Correlation Between Crown Castle and DEXUS

Can any of the company-specific risk be diversified away by investing in both Crown Castle and DEXUS 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 Crown Castle and DEXUS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Crown Castle International and DEXUS, you can compare the effects of market volatilities on Crown Castle and DEXUS 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 Crown Castle with a short position of DEXUS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crown Castle and DEXUS.

Diversification Opportunities for Crown Castle and DEXUS

0.7

Correlation Coefficient

Crown Castle  DEXUS

Poor diversification

The 3 months correlation between Crown and DEXUS is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Crown Castle International and DEXUS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DEXUS and Crown Castle 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 Crown Castle International are associated (or correlated) with DEXUS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DEXUS has no effect on the direction of Crown Castle i.e., Crown Castle and DEXUS go up and down completely randomly.

Pair Corralation between Crown Castle and DEXUS

Assuming the 90 days horizon Crown Castle International is expected to generate 1.08 times more return on investment than DEXUS. However, Crown Castle is 1.08 times more volatile than DEXUS. It trades about 0.07 of its potential returns per unit of risk. DEXUS is currently generating about 0.01 per unit of risk. If you would invest  8,818  in Crown Castle International on April 24, 2025 and sell it today you would earn a total of  490.00  from holding Crown Castle International or generate 5.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Crown Castle International  vs.  DEXUS

Crown Castle Interna

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Crown Castle International are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Crown Castle is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

DEXUS

Risk-Adjusted Performance

Very Weak

Over the last 90 days DEXUS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, DEXUS is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Crown Castle and DEXUS

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

The idea behind Crown Castle International and DEXUS 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..