Correlation Between Cushman Wakefield and J W

Can any of the company-specific risk be diversified away by investing in both Cushman Wakefield and J W 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 Cushman Wakefield and J W into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cushman Wakefield plc and J W Mays, you can compare the effects of market volatilities on Cushman Wakefield and J W 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 Cushman Wakefield with a short position of J W. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cushman Wakefield and J W.

Diversification Opportunities for Cushman Wakefield and J W

0.8

Correlation Coefficient

Cushman Wakefield  J W

Very poor diversification

The 3 months correlation between Cushman and MAYS is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Cushman Wakefield plc and J W Mays in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J W Mays and Cushman Wakefield 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 Cushman Wakefield plc are associated (or correlated) with J W. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J W Mays has no effect on the direction of Cushman Wakefield i.e., Cushman Wakefield and J W go up and down completely randomly.

Pair Corralation between Cushman Wakefield and J W

Considering the 90-day investment horizon Cushman Wakefield plc is expected to generate 1.01 times more return on investment than J W. However, Cushman Wakefield is 1.01 times more volatile than J W Mays. It trades about -0.14 of its potential returns per unit of risk. J W Mays is currently generating about -0.17 per unit of risk. If you would invest  1,302  in Cushman Wakefield plc on December 28, 2024 and sell it today you would lose (255.00) from holding Cushman Wakefield plc or give up 19.59% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	55.0%
Values	Daily Returns

Cushman Wakefield plc  vs.  J W Mays

Cushman Wakefield plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cushman Wakefield plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

J W Mays

Risk-Adjusted Performance

Very Weak

Over the last 90 days J W Mays has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Cushman Wakefield and J W

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

The idea behind Cushman Wakefield plc and J W Mays 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.