Correlation Between Zayo Group and SBA Communications
Can any of the company-specific risk be diversified away by investing in both Zayo Group and SBA Communications 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 Zayo Group and SBA Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zayo Group Holdings and SBA Communications Corp, you can compare the effects of market volatilities on Zayo Group and SBA Communications 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 Zayo Group with a short position of SBA Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zayo Group and SBA Communications.
Diversification Opportunities for Zayo Group and SBA Communications
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Zayo and SBA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Zayo Group Holdings and SBA Communications Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBA Communications Corp and Zayo Group 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 Zayo Group Holdings are associated (or correlated) with SBA Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBA Communications Corp has no effect on the direction of Zayo Group i.e., Zayo Group and SBA Communications go up and down completely randomly.
Pair Corralation between Zayo Group and SBA Communications
If you would invest (100.00) in Zayo Group Holdings on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Zayo Group Holdings or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Zayo Group Holdings vs. SBA Communications Corp
Performance |
| Timeline |
| Zayo Group Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SBA Communications Corp |
Zayo Group and SBA Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zayo Group and SBA Communications
The main advantage of trading using opposite Zayo Group and SBA Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zayo Group position performs unexpectedly, SBA Communications 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 SBA Communications will offset losses from the drop in SBA Communications' long position.| Zayo Group vs. Estee Lauder Companies | Zayo Group vs. Boston Beer | Zayo Group vs. Diageo PLC ADR | Zayo Group vs. Coty Inc |
| SBA Communications vs. American Tower Corp | SBA Communications vs. Digital Realty Trust | SBA Communications vs. Equinix | SBA Communications vs. Iron Mountain Incorporated |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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