Correlation Between Cushman Wakefield and Modiv

Can any of the company-specific risk be diversified away by investing in both Cushman Wakefield and Modiv 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 Modiv 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 Modiv Inc, you can compare the effects of market volatilities on Cushman Wakefield and Modiv 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 Modiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cushman Wakefield and Modiv.

Diversification Opportunities for Cushman Wakefield and Modiv

-0.12

Correlation Coefficient

Cushman Wakefield  Modiv

Good diversification

The 3 months correlation between Cushman and Modiv is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Cushman Wakefield plc and Modiv Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Modiv Inc 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 Modiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Modiv Inc has no effect on the direction of Cushman Wakefield i.e., Cushman Wakefield and Modiv go up and down completely randomly.

Pair Corralation between Cushman Wakefield and Modiv

Considering the 90-day investment horizon Cushman Wakefield plc is expected to generate 1.51 times more return on investment than Modiv. However, Cushman Wakefield is 1.51 times more volatile than Modiv Inc. It trades about 0.13 of its potential returns per unit of risk. Modiv Inc is currently generating about -0.06 per unit of risk. If you would invest  1,001  in Cushman Wakefield plc on May 5, 2025 and sell it today you would earn a total of  192.00  from holding Cushman Wakefield plc or generate 19.18% return on investment over 90 days.

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

Cushman Wakefield plc  vs.  Modiv Inc

Cushman Wakefield plc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cushman Wakefield plc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady basic indicators, Cushman Wakefield disclosed solid returns over the last few months and may actually be approaching a breakup point.

Modiv Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Modiv Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, Modiv is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Cushman Wakefield and Modiv

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

The idea behind Cushman Wakefield plc and Modiv Inc 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..