Correlation Between American Tower and B Communications
Can any of the company-specific risk be diversified away by investing in both American Tower and B 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 American Tower and B Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Tower Corp and B Communications, you can compare the effects of market volatilities on American Tower and B 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 American Tower with a short position of B Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Tower and B Communications.
Diversification Opportunities for American Tower and B Communications
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and BCOM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Tower Corp and B Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on B Communications and American Tower 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 American Tower Corp are associated (or correlated) with B Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of B Communications has no effect on the direction of American Tower i.e., American Tower and B Communications go up and down completely randomly.
Pair Corralation between American Tower and B Communications
If you would invest (100.00) in B Communications on January 26, 2024 and sell it today you would earn a total of 100.00 from holding B Communications 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 |
American Tower Corp vs. B Communications
Performance |
| Timeline |
| American Tower Corp |
| B Communications |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Tower and B Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Tower and B Communications
The main advantage of trading using opposite American Tower and B Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Tower position performs unexpectedly, B 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 B Communications will offset losses from the drop in B Communications' long position.| American Tower vs. Digital Realty Trust | American Tower vs. Equinix | American Tower vs. SBA Communications Corp | American Tower vs. Iron Mountain Incorporated |
| B Communications vs. Uber Technologies | B Communications vs. Microchip Technology | B Communications vs. FARO Technologies | B Communications vs. nLIGHT Inc |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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