Correlation Between Vantage Towers and Daiwa House
Can any of the company-specific risk be diversified away by investing in both Vantage Towers and Daiwa House 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 Daiwa House 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 Daiwa House Industry, you can compare the effects of market volatilities on Vantage Towers and Daiwa House 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 Daiwa House. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vantage Towers and Daiwa House.
Diversification Opportunities for Vantage Towers and Daiwa House
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vantage and Daiwa is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Vantage Towers AG and Daiwa House Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daiwa House Industry 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 Daiwa House. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daiwa House Industry has no effect on the direction of Vantage Towers i.e., Vantage Towers and Daiwa House go up and down completely randomly.
Pair Corralation between Vantage Towers and Daiwa House
Assuming the 90 days horizon Vantage Towers AG is expected to generate 0.33 times more return on investment than Daiwa House. However, Vantage Towers AG is 3.0 times less risky than Daiwa House. It trades about 0.13 of its potential returns per unit of risk. Daiwa House Industry is currently generating about 0.0 per unit of risk. If you would invest 3,828 in Vantage Towers AG on August 13, 2025 and sell it today you would earn a total of 178.00 from holding Vantage Towers AG or generate 4.65% 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. Daiwa House Industry
Performance |
| Timeline |
| Vantage Towers AG |
| Daiwa House Industry |
Vantage Towers and Daiwa House Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vantage Towers and Daiwa House
The main advantage of trading using opposite Vantage Towers and Daiwa House positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vantage Towers position performs unexpectedly, Daiwa House 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 Daiwa House will offset losses from the drop in Daiwa House's long position.| Vantage Towers vs. Henderson Land Development | Vantage Towers vs. Swire Properties Limited | Vantage Towers vs. Henderson Land | Vantage Towers vs. CK Asset Holdings |
| Daiwa House vs. China Overseas Land | Daiwa House vs. China Overseas Land | Daiwa House vs. Sumitomo Realty Development | Daiwa House vs. Sumitomo Realty Development |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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