Correlation Between Bridgemarq Real and Vantage Towers
Can any of the company-specific risk be diversified away by investing in both Bridgemarq Real 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 Bridgemarq Real and Vantage Towers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bridgemarq Real Estate and Vantage Towers AG, you can compare the effects of market volatilities on Bridgemarq Real 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 Bridgemarq Real with a short position of Vantage Towers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgemarq Real and Vantage Towers.
Diversification Opportunities for Bridgemarq Real and Vantage Towers
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bridgemarq and Vantage is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Bridgemarq Real Estate 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 Bridgemarq Real 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 Bridgemarq Real Estate 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 Bridgemarq Real i.e., Bridgemarq Real and Vantage Towers go up and down completely randomly.
Pair Corralation between Bridgemarq Real and Vantage Towers
Assuming the 90 days horizon Bridgemarq Real is expected to generate 10.84 times less return on investment than Vantage Towers. In addition to that, Bridgemarq Real is 1.5 times more volatile than Vantage Towers AG. It trades about 0.01 of its total potential returns per unit of risk. Vantage Towers AG is currently generating about 0.21 per unit of volatility. If you would invest 1,954 in Vantage Towers AG on September 20, 2024 and sell it today you would earn a total of 82.00 from holding Vantage Towers AG or generate 4.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bridgemarq Real Estate vs. Vantage Towers AG
Performance |
| Timeline |
| Bridgemarq Real Estate |
| Vantage Towers AG |
Bridgemarq Real and Vantage Towers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgemarq Real and Vantage Towers
The main advantage of trading using opposite Bridgemarq Real and Vantage Towers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgemarq Real 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.| Bridgemarq Real vs. Ashford Hospitality Trust | Bridgemarq Real vs. Ashford Hospitality Trust | Bridgemarq Real vs. Braemar Hotels Resorts | Bridgemarq Real vs. Braemar Hotels Resorts |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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