Correlation Between Colliers International and Kadestone Capital

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

Diversification Opportunities for Colliers International and Kadestone Capital

-0.67

Correlation Coefficient

Colliers International  Kadestone Capital

Excellent diversification

The 3 months correlation between Colliers and Kadestone is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Colliers International Group and Kadestone Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kadestone Capital Corp 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 Kadestone Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kadestone Capital Corp has no effect on the direction of Colliers International i.e., Colliers International and Kadestone Capital go up and down completely randomly.

Pair Corralation between Colliers International and Kadestone Capital

Assuming the 90 days trading horizon Colliers International Group is expected to generate 0.2 times more return on investment than Kadestone Capital. However, Colliers International Group is 4.96 times less risky than Kadestone Capital. It trades about 0.18 of its potential returns per unit of risk. Kadestone Capital Corp is currently generating about -0.01 per unit of risk. If you would invest  16,120  in Colliers International Group on April 24, 2025 and sell it today you would earn a total of  2,941  from holding Colliers International Group or generate 18.24% return on investment over 90 days.

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

Colliers International Group  vs.  Kadestone Capital Corp

Colliers International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Colliers International Group are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Colliers International displayed solid returns over the last few months and may actually be approaching a breakup point.

Kadestone Capital Corp

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Colliers International and Kadestone Capital

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

The idea behind Colliers International Group and Kadestone Capital Corp 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.