Hi Alanah,
Yes, you should have more colocalization (and actually reach a plateau at some distance, meaning that you have no more coloc).
However, the ethod implemented in coloc studio and described in Lagache et al. Cytometry Part A 2015 uses model fitting of Ripley's curve for estimating the coloc. There is an option in the plugin to check (by eye..) that the fitting curve is "close" to the measured Ripley's K function.
You may first check that fitting is ok in the 2 conditions
Then, If both are correct, subtle differences can appear because curve fitting remains a bit unpredictable. This means that if you reach the coloc plateau at 5 pixels, then it can slightly decrease for higher distances due to fitting artefacts
All the best
Thibault Lagache