Correlation Between Vantage Towers and Ke Holdings

Can any of the company-specific risk be diversified away by investing in both Vantage Towers and Ke Holdings 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 Ke Holdings 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 Ke Holdings, you can compare the effects of market volatilities on Vantage Towers and Ke Holdings 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 Ke Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vantage Towers and Ke Holdings.

Diversification Opportunities for Vantage Towers and Ke Holdings

0.0

Correlation Coefficient

Vantage Towers  Ke Holdings

Pay attention - limited upside

The 3 months correlation between Vantage and BEKE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Vantage Towers AG and Ke Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ke Holdings 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 Ke Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ke Holdings has no effect on the direction of Vantage Towers i.e., Vantage Towers and Ke Holdings go up and down completely randomly.

Pair Corralation between Vantage Towers and Ke Holdings

If you would invest  1,843  in Ke Holdings on December 28, 2024 and sell it today you would earn a total of  276.00  from holding Ke Holdings or generate 14.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Vantage Towers AG  vs.  Ke Holdings

Vantage Towers AG

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vantage Towers AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Vantage Towers is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Ke Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Ke Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent forward-looking signals, Ke Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Vantage Towers and Ke Holdings

The main advantage of trading using opposite Vantage Towers and Ke Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vantage Towers position performs unexpectedly, Ke Holdings 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 Ke Holdings will offset losses from the drop in Ke Holdings' long position.

The idea behind Vantage Towers AG and Ke Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.