Correlation Between Global X and Colliers International

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

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

Diversification Opportunities for Global X and Colliers International

0.23

Correlation Coefficient

Global X  Colliers International

Modest diversification

The 3 months correlation between Global and Colliers is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Global X Active and Colliers International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Colliers International and Global X 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 Global X Active 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 Global X i.e., Global X and Colliers International go up and down completely randomly.

Pair Corralation between Global X and Colliers International

Assuming the 90 days trading horizon Global X is expected to generate 7.23 times less return on investment than Colliers International. But when comparing it to its historical volatility, Global X Active is 2.97 times less risky than Colliers International. It trades about 0.05 of its potential returns per unit of risk. Colliers International Group is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  19,090  in Colliers International Group on September 3, 2024 and sell it today you would earn a total of  2,375  from holding Colliers International Group or generate 12.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Global X Active  vs.  Colliers International Group

Global X Active

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Global X Active are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Global X is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Colliers International

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Colliers International Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Colliers International may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Global X and Colliers International

The main advantage of trading using opposite Global X and Colliers International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X 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 Global X Active 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.