Correlation Between Colliers International and New York

Can any of the company-specific risk be diversified away by investing in both Colliers International and New York 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 New York 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 New York City, you can compare the effects of market volatilities on Colliers International and New York 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 New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Colliers International and New York.

Diversification Opportunities for Colliers International and New York

-0.1

Correlation Coefficient

Colliers International  New York

Good diversification

The 3 months correlation between Colliers and New is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Colliers International Group and New York City in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York City 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 New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York City has no effect on the direction of Colliers International i.e., Colliers International and New York go up and down completely randomly.

Pair Corralation between Colliers International and New York

Given the investment horizon of 90 days Colliers International Group is expected to generate 0.59 times more return on investment than New York. However, Colliers International Group is 1.68 times less risky than New York. It trades about 0.06 of its potential returns per unit of risk. New York City is currently generating about 0.04 per unit of risk. If you would invest  13,529  in Colliers International Group on October 21, 2024 and sell it today you would earn a total of  262.00  from holding Colliers International Group or generate 1.94% return on investment over 90 days.

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

Colliers International Group  vs.  New York City

Colliers International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Colliers International Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's technical and fundamental indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

New York City

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in New York City are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, New York is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Colliers International and New York

The main advantage of trading using opposite Colliers International and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Colliers International position performs unexpectedly, New York 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 New York will offset losses from the drop in New York's long position.

The idea behind Colliers International Group and New York City 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.