Correlation Between Offerpad Solutions and Colliers International

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

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

Diversification Opportunities for Offerpad Solutions and Colliers International

0.9

Correlation Coefficient

Offerpad Solutions  Colliers International

Almost no diversification

The 3 months correlation between Offerpad and Colliers is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Offerpad Solutions and Colliers International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Colliers International and Offerpad Solutions 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 Offerpad Solutions 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 Offerpad Solutions i.e., Offerpad Solutions and Colliers International go up and down completely randomly.

Pair Corralation between Offerpad Solutions and Colliers International

Given the investment horizon of 90 days Offerpad Solutions is expected to under-perform the Colliers International. In addition to that, Offerpad Solutions is 2.44 times more volatile than Colliers International Group. It trades about -0.2 of its total potential returns per unit of risk. Colliers International Group is currently generating about -0.14 per unit of volatility. If you would invest  14,423  in Colliers International Group on January 26, 2025 and sell it today you would lose (2,770) from holding Colliers International Group or give up 19.21% of portfolio value over 90 days.

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

Offerpad Solutions  vs.  Colliers International Group

Offerpad Solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days Offerpad Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in May 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

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 inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in May 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Offerpad Solutions and Colliers International

The main advantage of trading using opposite Offerpad Solutions and Colliers International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Offerpad Solutions 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 Offerpad Solutions 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.