Correlation Between BT Group and Crown Castle
Can any of the company-specific risk be diversified away by investing in both BT Group and Crown Castle 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 BT Group and Crown Castle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BT Group Plc and Crown Castle, you can compare the effects of market volatilities on BT Group and Crown Castle 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 BT Group with a short position of Crown Castle. Check out your portfolio center. Please also check ongoing floating volatility patterns of BT Group and Crown Castle.
Diversification Opportunities for BT Group and Crown Castle
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BT Group and Crown is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BT Group Plc and Crown Castle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crown Castle and BT 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 BT Group Plc are associated (or correlated) with Crown Castle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crown Castle has no effect on the direction of BT Group i.e., BT Group and Crown Castle go up and down completely randomly.
Pair Corralation between BT Group and Crown Castle
If you would invest (100.00) in BT Group Plc on January 24, 2024 and sell it today you would earn a total of 100.00 from holding BT Group Plc 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 |
BT Group Plc vs. Crown Castle
Performance |
| Timeline |
| BT Group Plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Crown Castle |
BT Group and Crown Castle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BT Group and Crown Castle
The main advantage of trading using opposite BT Group and Crown Castle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BT Group position performs unexpectedly, Crown Castle 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 Crown Castle will offset losses from the drop in Crown Castle's long position.| BT Group vs. Papaya Growth Opportunity | BT Group vs. SEI Investments | BT Group vs. GDEV Inc | BT Group vs. Iris Acquisition Corp |
| Crown Castle vs. Digital Realty Trust | Crown Castle vs. Equinix | Crown Castle vs. SBA Communications Corp | Crown Castle 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |