Correlation Between New England and Colliers International

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

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

Diversification Opportunities for New England and Colliers International

0.22

Correlation Coefficient

New England  Colliers International

Modest diversification

The 3 months correlation between New and Colliers is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding New England Realty and Colliers International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Colliers International and New England 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 New England Realty 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 New England i.e., New England and Colliers International go up and down completely randomly.

Pair Corralation between New England and Colliers International

Considering the 90-day investment horizon New England Realty is expected to generate 1.27 times more return on investment than Colliers International. However, New England is 1.27 times more volatile than Colliers International Group. It trades about 0.05 of its potential returns per unit of risk. Colliers International Group is currently generating about -0.07 per unit of risk. If you would invest  7,426  in New England Realty on December 27, 2024 and sell it today you would earn a total of  279.00  from holding New England Realty or generate 3.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	68.85%
Values	Daily Returns

New England Realty  vs.  Colliers International Group

New England Realty

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in New England Realty are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain technical and fundamental indicators, New England 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. 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.

Pair Trading with New England and Colliers International

The main advantage of trading using opposite New England and Colliers International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New England 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 New England Realty 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.