Correlation Between Henderson Land and Vantage Towers
Can any of the company-specific risk be diversified away by investing in both Henderson Land 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 Henderson Land and Vantage Towers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Henderson Land Development and Vantage Towers AG, you can compare the effects of market volatilities on Henderson Land 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 Henderson Land with a short position of Vantage Towers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henderson Land and Vantage Towers.
Diversification Opportunities for Henderson Land and Vantage Towers
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Henderson and Vantage is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Henderson Land Development 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 Henderson Land 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 Henderson Land Development 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 Henderson Land i.e., Henderson Land and Vantage Towers go up and down completely randomly.
Pair Corralation between Henderson Land and Vantage Towers
Assuming the 90 days horizon Henderson Land Development is expected to generate 2.67 times more return on investment than Vantage Towers. However, Henderson Land is 2.67 times more volatile than Vantage Towers AG. It trades about 0.14 of its potential returns per unit of risk. Vantage Towers AG is currently generating about 0.12 per unit of risk. If you would invest 332.00 in Henderson Land Development on August 27, 2025 and sell it today you would earn a total of 48.00 from holding Henderson Land Development or generate 14.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Henderson Land Development vs. Vantage Towers AG
Performance |
| Timeline |
| Henderson Land Devel |
| Vantage Towers AG |
Henderson Land and Vantage Towers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henderson Land and Vantage Towers
The main advantage of trading using opposite Henderson Land and Vantage Towers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henderson Land 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.| Henderson Land vs. Lattice Semiconductor | Henderson Land vs. PARKSON Retail Group | Henderson Land vs. Caseys General Stores | Henderson Land vs. Delek Drilling |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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