Correlation Between BG Foods and Vantage Towers
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 Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
BG Foods vs. Vantage Towers AG
Performance |
| Timeline |
| BG Foods |
| Vantage Towers AG |
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.| BG Foods vs. T Mobile US, 6250 | BG Foods vs. United Natural Foods | BG Foods vs. First Foods Group | BG Foods vs. World of Wireless |
| Vantage Towers vs. C3 Metals | Vantage Towers vs. BG Foods | Vantage Towers vs. First Foods Group | Vantage Towers vs. BW Offshore Limited |
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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