Correlation Between New York and Cushman Wakefield

Can any of the company-specific risk be diversified away by investing in both New York and Cushman Wakefield 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 New York and Cushman Wakefield into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between New York City and Cushman Wakefield plc, you can compare the effects of market volatilities on New York and Cushman Wakefield 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 New York with a short position of Cushman Wakefield. Check out your portfolio center. Please also check ongoing floating volatility patterns of New York and Cushman Wakefield.

Diversification Opportunities for New York and Cushman Wakefield

-0.61

Correlation Coefficient

New York  Cushman Wakefield

Excellent diversification

The 3 months correlation between New and Cushman is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding New York City and Cushman Wakefield plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cushman Wakefield plc and New York 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 New York City are associated (or correlated) with Cushman Wakefield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cushman Wakefield plc has no effect on the direction of New York i.e., New York and Cushman Wakefield go up and down completely randomly.

Pair Corralation between New York and Cushman Wakefield

Considering the 90-day investment horizon New York City is expected to generate 1.45 times more return on investment than Cushman Wakefield. However, New York is 1.45 times more volatile than Cushman Wakefield plc. It trades about 0.06 of its potential returns per unit of risk. Cushman Wakefield plc is currently generating about -0.06 per unit of risk. If you would invest  870.00  in New York City on March 25, 2025 and sell it today you would earn a total of  178.00  from holding New York City or generate 20.46% return on investment over 90 days.

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

New York City  vs.  Cushman Wakefield plc

New York City

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in New York City are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, New York is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Cushman Wakefield plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cushman Wakefield plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Cushman Wakefield is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with New York and Cushman Wakefield

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

The idea behind New York City and Cushman Wakefield plc 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.