Correlation Between Vantage Towers and CapitaLand Investment

Can any of the company-specific risk be diversified away by investing in both Vantage Towers and CapitaLand Investment 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 CapitaLand Investment 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 CapitaLand Investment Limited, you can compare the effects of market volatilities on Vantage Towers and CapitaLand Investment 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 CapitaLand Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vantage Towers and CapitaLand Investment.

Diversification Opportunities for Vantage Towers and CapitaLand Investment

0.0

Correlation Coefficient

Vantage Towers  CapitaLand Investment

Pay attention - limited upside

The 3 months correlation between Vantage and CapitaLand is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Vantage Towers AG and CapitaLand Investment Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapitaLand Investment 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 CapitaLand Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CapitaLand Investment has no effect on the direction of Vantage Towers i.e., Vantage Towers and CapitaLand Investment go up and down completely randomly.

Pair Corralation between Vantage Towers and CapitaLand Investment

If you would invest  182.00  in CapitaLand Investment Limited on May 5, 2025 and sell it today you would earn a total of  27.00  from holding CapitaLand Investment Limited or generate 14.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Vantage Towers AG  vs.  CapitaLand Investment Limited

Vantage Towers AG

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vantage Towers AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, Vantage Towers is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

CapitaLand Investment

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CapitaLand Investment Limited are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain essential indicators, CapitaLand Investment reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Vantage Towers and CapitaLand Investment

The main advantage of trading using opposite Vantage Towers and CapitaLand Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vantage Towers position performs unexpectedly, CapitaLand Investment 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 CapitaLand Investment will offset losses from the drop in CapitaLand Investment's long position.

The idea behind Vantage Towers AG and CapitaLand Investment Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.