Correlation Between Bank Central and Vantage Towers
Can any of the company-specific risk be diversified away by investing in both Bank Central 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 Bank Central and Vantage Towers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Central Asia and Vantage Towers AG, you can compare the effects of market volatilities on Bank Central 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 Bank Central with a short position of Vantage Towers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and Vantage Towers.
Diversification Opportunities for Bank Central and Vantage Towers
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Vantage is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia 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 Bank Central 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 Bank Central Asia 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 Bank Central i.e., Bank Central and Vantage Towers go up and down completely randomly.
Pair Corralation between Bank Central and Vantage Towers
Assuming the 90 days horizon Bank Central Asia is expected to under-perform the Vantage Towers. In addition to that, Bank Central is 4.59 times more volatile than Vantage Towers AG. It trades about -0.08 of its total potential returns per unit of risk. Vantage Towers AG is currently generating about 0.1 per unit of volatility. If you would invest 3,857 in Vantage Towers AG on November 2, 2024 and sell it today you would earn a total of 149.00 from holding Vantage Towers AG or generate 3.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.26% |
| Values | Daily Returns |
Bank Central Asia vs. Vantage Towers AG
Performance |
| Timeline |
| Bank Central Asia |
| Vantage Towers AG |
Bank Central and Vantage Towers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and Vantage Towers
The main advantage of trading using opposite Bank Central and Vantage Towers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central 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.| Bank Central vs. First Hawaiian | Bank Central vs. Central Pacific Financial | Bank Central vs. Territorial Bancorp | Bank Central vs. Comerica |
| Vantage Towers vs. Redfin Corp | Vantage Towers vs. Offerpad Solutions | Vantage Towers vs. eXp World Holdings | Vantage Towers vs. Ohmyhome Limited Ordinary |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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