Correlation Between Winpak and Colliers International

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

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

Diversification Opportunities for Winpak and Colliers International

0.72

Correlation Coefficient

Winpak  Colliers International

Poor diversification

The 3 months correlation between Winpak and Colliers is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Winpak and Colliers International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Colliers International and Winpak 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 Winpak 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 Winpak i.e., Winpak and Colliers International go up and down completely randomly.

Pair Corralation between Winpak and Colliers International

Assuming the 90 days trading horizon Winpak is expected to under-perform the Colliers International. But the stock apears to be less risky and, when comparing its historical volatility, Winpak is 1.4 times less risky than Colliers International. The stock trades about -0.16 of its potential returns per unit of risk. The Colliers International Group is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest  19,548  in Colliers International Group on December 31, 2024 and sell it today you would lose (2,303) from holding Colliers International Group or give up 11.78% of portfolio value over 90 days.

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

Winpak  vs.  Colliers International Group

Winpak

Risk-Adjusted Performance

Very Weak

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

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 latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Winpak and Colliers International

The main advantage of trading using opposite Winpak and Colliers International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winpak 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 Winpak 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.