Correlation Between Financial and Colliers International

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

By analyzing existing cross correlation between Financial 15 Split and Colliers International Group, you can compare the effects of market volatilities on Financial and Colliers International 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 Financial with a short position of Colliers International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Financial and Colliers International.

Diversification Opportunities for Financial and Colliers International

-0.68

Correlation Coefficient

Financial  Colliers International

Excellent diversification

The 3 months correlation between Financial and Colliers is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Financial 15 Split and Colliers International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Colliers International and Financial 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 Financial 15 Split are associated (or correlated) with Colliers International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Colliers International has no effect on the direction of Financial i.e., Financial and Colliers International go up and down completely randomly.

Pair Corralation between Financial and Colliers International

Assuming the 90 days trading horizon Financial 15 Split is expected to generate 0.16 times more return on investment than Colliers International. However, Financial 15 Split is 6.12 times less risky than Colliers International. It trades about 0.37 of its potential returns per unit of risk. Colliers International Group is currently generating about -0.12 per unit of risk. If you would invest  1,040  in Financial 15 Split on December 1, 2024 and sell it today you would earn a total of  70.00  from holding Financial 15 Split or generate 6.73% return on investment over 90 days.

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

Financial 15 Split  vs.  Colliers International Group

Financial 15 Split

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Financial 15 Split are ranked lower than 29 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Financial may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Colliers International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Colliers International Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Financial and Colliers International

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

The idea behind Financial 15 Split and Colliers International 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 Transaction History module to view history of all your transactions and understand their impact on performance.