Correlation Between Colliers International and Stingray

Can any of the company-specific risk be diversified away by investing in both Colliers International and Stingray at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Colliers International and Stingray into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Colliers International Group and Stingray Group, you can compare the effects of market volatilities on Colliers International and Stingray and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Colliers International with a short position of Stingray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Colliers International and Stingray.

Diversification Opportunities for Colliers International and Stingray

0.15

Correlation Coefficient

Colliers International  Stingray

Average diversification

The 3 months correlation between Colliers and Stingray is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Colliers International Group and Stingray Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stingray Group and Colliers International is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Colliers International Group are associated (or correlated) with Stingray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stingray Group has no effect on the direction of Colliers International i.e., Colliers International and Stingray go up and down completely randomly.

Pair Corralation between Colliers International and Stingray

Assuming the 90 days trading horizon Colliers International is expected to generate 1.46 times less return on investment than Stingray. But when comparing it to its historical volatility, Colliers International Group is 1.18 times less risky than Stingray. It trades about 0.04 of its potential returns per unit of risk. Stingray Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  744.00  in Stingray Group on September 15, 2024 and sell it today you would earn a total of  36.00  from holding Stingray Group or generate 4.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Colliers International Group  vs.  Stingray Group

Colliers International

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Colliers International Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Colliers International is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Stingray Group

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Stingray Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Stingray is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Colliers International and Stingray

The main advantage of trading using opposite Colliers International and Stingray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Colliers International position performs unexpectedly, Stingray can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Stingray will offset losses from the drop in Stingray's long position.

The idea behind Colliers International Group and Stingray Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.