Correlation Between Vantage Towers and Grand City
Can any of the company-specific risk be diversified away by investing in both Vantage Towers and Grand City 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 Grand City 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 Grand City Properties, you can compare the effects of market volatilities on Vantage Towers and Grand City 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 Grand City. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vantage Towers and Grand City.
Diversification Opportunities for Vantage Towers and Grand City
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vantage and Grand is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Vantage Towers AG and Grand City Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand City Properties 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 Grand City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand City Properties has no effect on the direction of Vantage Towers i.e., Vantage Towers and Grand City go up and down completely randomly.
Pair Corralation between Vantage Towers and Grand City
Assuming the 90 days horizon Vantage Towers is expected to generate 2.11 times less return on investment than Grand City. But when comparing it to its historical volatility, Vantage Towers AG is 4.31 times less risky than Grand City. It trades about 0.06 of its potential returns per unit of risk. Grand City Properties is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 938.00 in Grand City Properties on September 19, 2024 and sell it today you would earn a total of 271.00 from holding Grand City Properties or generate 28.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vantage Towers AG vs. Grand City Properties
Performance |
| Timeline |
| Vantage Towers AG |
| Grand City Properties |
Vantage Towers and Grand City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vantage Towers and Grand City
The main advantage of trading using opposite Vantage Towers and Grand City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vantage Towers position performs unexpectedly, Grand City 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 Grand City will offset losses from the drop in Grand City's long position.| Vantage Towers vs. Asia Pptys | Vantage Towers vs. Adler Group SA | Vantage Towers vs. Ambase Corp | Vantage Towers vs. Bridgemarq Real Estate |
| Grand City vs. J W Mays | Grand City vs. Frp Holdings Ord | Grand City vs. Maui Land Pineapple | Grand City vs. Fathom 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |