Correlation Between J W and CBRE Group
Can any of the company-specific risk be diversified away by investing in both J W and CBRE Group 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 J W and CBRE Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between J W Mays and CBRE Group Class, you can compare the effects of market volatilities on J W and CBRE Group 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 J W with a short position of CBRE Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of J W and CBRE Group.
Diversification Opportunities for J W and CBRE Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAYS and CBRE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding J W Mays and CBRE Group Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBRE Group Class and J W 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 J W Mays are associated (or correlated) with CBRE Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBRE Group Class has no effect on the direction of J W i.e., J W and CBRE Group go up and down completely randomly.
Pair Corralation between J W and CBRE Group
Given the investment horizon of 90 days J W Mays is expected to generate 1.46 times more return on investment than CBRE Group. However, J W is 1.46 times more volatile than CBRE Group Class. It trades about -0.03 of its potential returns per unit of risk. CBRE Group Class is currently generating about -0.1 per unit of risk. If you would invest 3,850 in J W Mays on August 14, 2025 and sell it today you would lose (28.00) from holding J W Mays or give up 0.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 20.93% |
| Values | Daily Returns |
J W Mays vs. CBRE Group Class
Performance |
| Timeline |
| J W Mays |
Risk-Adjusted Performance
Fair
Weak | Strong |
| CBRE Group Class |
J W and CBRE Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J W and CBRE Group
The main advantage of trading using opposite J W and CBRE Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J W position performs unexpectedly, CBRE Group 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 CBRE Group will offset losses from the drop in CBRE Group's long position.The idea behind J W Mays and CBRE Group Class 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.| CBRE Group vs. Public Storage | CBRE Group vs. Crown Castle | CBRE Group vs. Ke Holdings | CBRE Group vs. Realty Income |
Check out your portfolio center.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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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