Correlation Between Vantage Towers and Vonovia SE
Can any of the company-specific risk be diversified away by investing in both Vantage Towers and Vonovia SE 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 Vonovia SE 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 Vonovia SE, you can compare the effects of market volatilities on Vantage Towers and Vonovia SE 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 Vonovia SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vantage Towers and Vonovia SE.
Diversification Opportunities for Vantage Towers and Vonovia SE
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vantage and Vonovia is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Vantage Towers AG and Vonovia SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vonovia SE 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 Vonovia SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vonovia SE has no effect on the direction of Vantage Towers i.e., Vantage Towers and Vonovia SE go up and down completely randomly.
Pair Corralation between Vantage Towers and Vonovia SE
Assuming the 90 days horizon Vantage Towers AG is expected to generate 0.37 times more return on investment than Vonovia SE. However, Vantage Towers AG is 2.71 times less risky than Vonovia SE. It trades about 0.18 of its potential returns per unit of risk. Vonovia SE is currently generating about 0.0 per unit of risk. If you would invest 1,948 in Vantage Towers AG on September 11, 2025 and sell it today you would earn a total of 194.00 from holding Vantage Towers AG or generate 9.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vantage Towers AG vs. Vonovia SE
Performance |
| Timeline |
| Vantage Towers AG |
| Vonovia SE |
Vantage Towers and Vonovia SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vantage Towers and Vonovia SE
The main advantage of trading using opposite Vantage Towers and Vonovia SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vantage Towers position performs unexpectedly, Vonovia SE 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 Vonovia SE will offset losses from the drop in Vonovia SE's long position.| Vantage Towers vs. Swiss Prime Site | Vantage Towers vs. Infrastrutture Wireless Italiane | Vantage Towers vs. Scout24 AG | Vantage Towers vs. Longfor Properties Co |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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