Correlation Between Ke Holdings and Vantage Towers
Can any of the company-specific risk be diversified away by investing in both Ke Holdings 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 Ke Holdings and Vantage Towers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ke Holdings and Vantage Towers AG, you can compare the effects of market volatilities on Ke Holdings 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 Ke Holdings with a short position of Vantage Towers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ke Holdings and Vantage Towers.
Diversification Opportunities for Ke Holdings and Vantage Towers
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between BEKE and Vantage is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Ke Holdings 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 Ke Holdings 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 Ke Holdings 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 Ke Holdings i.e., Ke Holdings and Vantage Towers go up and down completely randomly.
Pair Corralation between Ke Holdings and Vantage Towers
Given the investment horizon of 90 days Ke Holdings is expected to generate 3.92 times more return on investment than Vantage Towers. However, Ke Holdings is 3.92 times more volatile than Vantage Towers AG. It trades about 0.04 of its potential returns per unit of risk. Vantage Towers AG is currently generating about 0.06 per unit of risk. If you would invest 1,437 in Ke Holdings on September 12, 2024 and sell it today you would earn a total of 597.00 from holding Ke Holdings or generate 41.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ke Holdings vs. Vantage Towers AG
Performance |
| Timeline |
| Ke Holdings |
| Vantage Towers AG |
Ke Holdings and Vantage Towers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ke Holdings and Vantage Towers
The main advantage of trading using opposite Ke Holdings and Vantage Towers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ke Holdings 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.| Ke Holdings vs. Marcus Millichap | Ke Holdings vs. Digitalbridge Group | Ke Holdings vs. Jones Lang LaSalle | Ke Holdings vs. CBRE Group Class |
| Vantage Towers vs. Timken Company | Vantage Towers vs. Beauty Health Co | Vantage Towers vs. Meiwu Technology Co | Vantage Towers vs. Church Dwight |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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