Correlation Between Vodafone Group and Anterix
Can any of the company-specific risk be diversified away by investing in both Vodafone Group and Anterix 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 Vodafone Group and Anterix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vodafone Group PLC and Anterix, you can compare the effects of market volatilities on Vodafone Group and Anterix 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 Vodafone Group with a short position of Anterix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vodafone Group and Anterix.
Diversification Opportunities for Vodafone Group and Anterix
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vodafone and Anterix is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Vodafone Group PLC and Anterix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anterix and Vodafone 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 Vodafone Group PLC are associated (or correlated) with Anterix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anterix has no effect on the direction of Vodafone Group i.e., Vodafone Group and Anterix go up and down completely randomly.
Pair Corralation between Vodafone Group and Anterix
Considering the 90-day investment horizon Vodafone Group PLC is expected to generate 0.51 times more return on investment than Anterix. However, Vodafone Group PLC is 1.98 times less risky than Anterix. It trades about 0.1 of its potential returns per unit of risk. Anterix is currently generating about -0.05 per unit of risk. If you would invest 821.00 in Vodafone Group PLC on November 9, 2024 and sell it today you would earn a total of 23.00 from holding Vodafone Group PLC or generate 2.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vodafone Group PLC vs. Anterix
Performance |
| Timeline |
| Vodafone Group PLC |
| Anterix |
Vodafone Group and Anterix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vodafone Group and Anterix
The main advantage of trading using opposite Vodafone Group and Anterix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vodafone Group position performs unexpectedly, Anterix 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 Anterix will offset losses from the drop in Anterix's long position.| Vodafone Group vs. Verizon Communications | Vodafone Group vs. Guggenheim Large Cap | Vodafone Group vs. I Mab | Vodafone Group vs. Rational Special Situations |
| Anterix vs. Shenandoah Telecommunications Co | Anterix vs. Liberty Broadband Corp | Anterix vs. Ooma Inc | Anterix vs. IDT Corporation |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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