Correlation Between Colliers International and J W

Can any of the company-specific risk be diversified away by investing in both Colliers International 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 Colliers International and J W 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 J W Mays, you can compare the effects of market volatilities on Colliers International 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 Colliers International with a short position of J W. Check out your portfolio center. Please also check ongoing floating volatility patterns of Colliers International and J W.

Diversification Opportunities for Colliers International and J W

-0.45

Correlation Coefficient

Colliers International  J W

Very good diversification

The 3 months correlation between Colliers and MAYS is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Colliers International Group 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 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 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 Colliers International i.e., Colliers International and J W go up and down completely randomly.

Pair Corralation between Colliers International and J W

Given the investment horizon of 90 days Colliers International Group is expected to generate 0.72 times more return on investment than J W. However, Colliers International Group is 1.39 times less risky than J W. It trades about -0.08 of its potential returns per unit of risk. J W Mays is currently generating about -0.06 per unit of risk. If you would invest  13,930  in Colliers International Group on February 3, 2025 and sell it today you would lose (1,745) from holding Colliers International Group or give up 12.53% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	59.38%
Values	Daily Returns

Colliers International Group  vs.  J W Mays

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.

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 latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Colliers International and J W

The main advantage of trading using opposite Colliers International and J W positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Colliers International 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 Colliers International Group 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.