Correlation Between CBRE Group and Vantage Towers
Can any of the company-specific risk be diversified away by investing in both CBRE 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 CBRE 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 CBRE Group Class and Vantage Towers AG, you can compare the effects of market volatilities on CBRE 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 CBRE Group with a short position of Vantage Towers. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBRE Group and Vantage Towers.
Diversification Opportunities for CBRE Group and Vantage Towers
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CBRE and Vantage is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding CBRE Group Class 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 CBRE 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 CBRE Group Class 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 CBRE Group i.e., CBRE Group and Vantage Towers go up and down completely randomly.
Pair Corralation between CBRE Group and Vantage Towers
Given the investment horizon of 90 days CBRE Group Class is expected to generate 2.24 times more return on investment than Vantage Towers. However, CBRE Group is 2.24 times more volatile than Vantage Towers AG. It trades about 0.13 of its potential returns per unit of risk. Vantage Towers AG is currently generating about 0.08 per unit of risk. If you would invest 8,225 in CBRE Group Class on September 4, 2024 and sell it today you would earn a total of 5,614 from holding CBRE Group Class or generate 68.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CBRE Group Class vs. Vantage Towers AG
Performance |
| Timeline |
| CBRE Group Class |
| Vantage Towers AG |
CBRE Group and Vantage Towers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBRE Group and Vantage Towers
The main advantage of trading using opposite CBRE Group and Vantage Towers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBRE 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.| CBRE Group vs. Cushman Wakefield plc | CBRE Group vs. Newmark Group | CBRE Group vs. Colliers International Group | CBRE Group vs. Marcus Millichap |
| Vantage Towers vs. CBRE Group Class | Vantage Towers vs. CoStar Group | Vantage Towers vs. Cellnex Telecom SA | Vantage Towers vs. Ke Holdings |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| CEOs Directory Screen CEOs from public companies around the world |