Correlation Between BG Foods and Vantage Towers

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Can any of the company-specific risk be diversified away by investing in both BG Foods 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 BG Foods and Vantage Towers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BG Foods and Vantage Towers AG, you can compare the effects of market volatilities on BG Foods 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 BG Foods with a short position of Vantage Towers. Check out your portfolio center. Please also check ongoing floating volatility patterns of BG Foods and Vantage Towers.

Diversification Opportunities for BG Foods and Vantage Towers

0.29
  Correlation Coefficient

Modest diversification

The 3 months correlation between BGS and Vantage is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding BG Foods 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 BG Foods 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 BG Foods 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 BG Foods i.e., BG Foods and Vantage Towers go up and down completely randomly.

Pair Corralation between BG Foods and Vantage Towers

Considering the 90-day investment horizon BG Foods is expected to generate 6.71 times more return on investment than Vantage Towers. However, BG Foods is 6.71 times more volatile than Vantage Towers AG. It trades about 0.04 of its potential returns per unit of risk. Vantage Towers AG is currently generating about 0.13 per unit of risk. If you would invest  426.00  in BG Foods on August 28, 2025 and sell it today you would earn a total of  19.00  from holding BG Foods or generate 4.46% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy98.44%
ValuesDaily Returns

BG Foods  vs.  Vantage Towers AG

 Performance 
       Timeline  
BG Foods 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in BG Foods are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting technical and fundamental indicators, BG Foods may actually be approaching a critical reversion point that can send shares even higher in December 2025.
Vantage Towers AG 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Vantage Towers AG are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Vantage Towers is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

BG Foods and Vantage Towers Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with BG Foods and Vantage Towers

The main advantage of trading using opposite BG Foods and Vantage Towers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BG Foods 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.
The idea behind BG Foods and Vantage Towers AG 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.
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

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