Correlation Between Crown Castle and AFC Gamma
Can any of the company-specific risk be diversified away by investing in both Crown Castle and AFC Gamma 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 Crown Castle and AFC Gamma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crown Castle and AFC Gamma, you can compare the effects of market volatilities on Crown Castle and AFC Gamma 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 Crown Castle with a short position of AFC Gamma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crown Castle and AFC Gamma.
Diversification Opportunities for Crown Castle and AFC Gamma
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Crown and AFC is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Crown Castle and AFC Gamma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFC Gamma and Crown Castle 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 Crown Castle are associated (or correlated) with AFC Gamma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFC Gamma has no effect on the direction of Crown Castle i.e., Crown Castle and AFC Gamma go up and down completely randomly.
Pair Corralation between Crown Castle and AFC Gamma
Considering the 90-day investment horizon Crown Castle is expected to generate 0.46 times more return on investment than AFC Gamma. However, Crown Castle is 2.16 times less risky than AFC Gamma. It trades about -0.06 of its potential returns per unit of risk. AFC Gamma is currently generating about -0.3 per unit of risk. If you would invest 9,371 in Crown Castle on August 25, 2025 and sell it today you would lose (370.00) from holding Crown Castle or give up 3.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crown Castle vs. AFC Gamma
Performance |
| Timeline |
| Crown Castle |
| AFC Gamma |
Crown Castle and AFC Gamma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crown Castle and AFC Gamma
The main advantage of trading using opposite Crown Castle and AFC Gamma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crown Castle position performs unexpectedly, AFC Gamma 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 AFC Gamma will offset losses from the drop in AFC Gamma's long position.| Crown Castle vs. Kimco Realty | Crown Castle vs. Iron Mountain Incorporated | Crown Castle vs. Public Storage | Crown Castle vs. CBRE Group Class |
| AFC Gamma vs. Cherry Hill Mortgage | AFC Gamma vs. Clipper Realty | AFC Gamma vs. Global Medical REIT | AFC Gamma vs. Lument Finance Trust |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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