Correlation Between Adler Group and Vantage Towers
Can any of the company-specific risk be diversified away by investing in both Adler Group and Vantage Towers 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 Adler Group and Vantage Towers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adler Group SA and Vantage Towers AG, you can compare the effects of market volatilities on Adler Group and Vantage Towers 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 Adler Group with a short position of Vantage Towers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adler Group and Vantage Towers.
Diversification Opportunities for Adler Group and Vantage Towers
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Adler and Vantage is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Adler Group SA and Vantage Towers AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vantage Towers AG and Adler Group 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 Adler Group SA are associated (or correlated) with Vantage Towers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vantage Towers AG has no effect on the direction of Adler Group i.e., Adler Group and Vantage Towers go up and down completely randomly.
Pair Corralation between Adler Group and Vantage Towers
Assuming the 90 days horizon Adler Group SA is expected to under-perform the Vantage Towers. In addition to that, Adler Group is 4.49 times more volatile than Vantage Towers AG. It trades about -0.05 of its total potential returns per unit of risk. Vantage Towers AG is currently generating about 0.05 per unit of volatility. If you would invest 1,643 in Vantage Towers AG on September 20, 2024 and sell it today you would earn a total of 393.00 from holding Vantage Towers AG or generate 23.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Adler Group SA vs. Vantage Towers AG
Performance |
| Timeline |
| Adler Group SA |
| Vantage Towers AG |
Adler Group and Vantage Towers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adler Group and Vantage Towers
The main advantage of trading using opposite Adler Group and Vantage Towers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adler Group position performs unexpectedly, Vantage Towers 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 Vantage Towers will offset losses from the drop in Vantage Towers' long position.| Adler Group vs. Aztec Land Comb | Adler Group vs. Bridgemarq Real Estate | Adler Group vs. Ambase Corp | Adler Group vs. Agritek Holdings |
| Vantage Towers vs. Asia Pptys | Vantage Towers vs. Adler Group SA | Vantage Towers vs. Ambase Corp | Vantage Towers vs. Bridgemarq Real Estate |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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