Correlation Between Vantage Towers and CBRE Group
Can any of the company-specific risk be diversified away by investing in both Vantage Towers and CBRE Group 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 Vantage Towers and CBRE Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vantage Towers AG and CBRE Group Class, you can compare the effects of market volatilities on Vantage Towers and CBRE Group 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 Vantage Towers with a short position of CBRE Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vantage Towers and CBRE Group.
Diversification Opportunities for Vantage Towers and CBRE Group
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Vantage and CBRE is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Vantage Towers AG and CBRE Group Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBRE Group Class and Vantage Towers 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 Vantage Towers AG are associated (or correlated) with CBRE Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBRE Group Class has no effect on the direction of Vantage Towers i.e., Vantage Towers and CBRE Group go up and down completely randomly.
Pair Corralation between Vantage Towers and CBRE Group
If you would invest 12,565 in CBRE Group Class on October 20, 2024 and sell it today you would earn a total of 1,126 from holding CBRE Group Class or generate 8.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Vantage Towers AG vs. CBRE Group Class
Performance |
| Timeline |
| Vantage Towers AG |
| CBRE Group Class |
Vantage Towers and CBRE Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vantage Towers and CBRE Group
The main advantage of trading using opposite Vantage Towers and CBRE Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vantage Towers position performs unexpectedly, CBRE Group 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 CBRE Group will offset losses from the drop in CBRE Group's long position.| Vantage Towers vs. CBRE Group Class | Vantage Towers vs. Cellnex Telecom SA | Vantage Towers vs. Cellnex Telecom SA | Vantage Towers vs. CoStar Group |
| CBRE Group vs. Cushman Wakefield plc | CBRE Group vs. Newmark Group | CBRE Group vs. Colliers International Group | CBRE Group vs. Marcus Millichap |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |