Correlation Between Host Hotels and Cellnex Telecom
Can any of the company-specific risk be diversified away by investing in both Host Hotels and Cellnex Telecom 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 Host Hotels and Cellnex Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Host Hotels Resorts and Cellnex Telecom SA, you can compare the effects of market volatilities on Host Hotels and Cellnex Telecom 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 Host Hotels with a short position of Cellnex Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Host Hotels and Cellnex Telecom.
Diversification Opportunities for Host Hotels and Cellnex Telecom
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Host and Cellnex is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Host Hotels Resorts and Cellnex Telecom SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellnex Telecom SA and Host Hotels 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 Host Hotels Resorts are associated (or correlated) with Cellnex Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellnex Telecom SA has no effect on the direction of Host Hotels i.e., Host Hotels and Cellnex Telecom go up and down completely randomly.
Pair Corralation between Host Hotels and Cellnex Telecom
Assuming the 90 days trading horizon Host Hotels Resorts is expected to generate 1.15 times more return on investment than Cellnex Telecom. However, Host Hotels is 1.15 times more volatile than Cellnex Telecom SA. It trades about 0.03 of its potential returns per unit of risk. Cellnex Telecom SA is currently generating about 0.01 per unit of risk. If you would invest 1,606 in Host Hotels Resorts on August 31, 2024 and sell it today you would earn a total of 245.00 from holding Host Hotels Resorts or generate 15.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.78% |
| Values | Daily Returns |
Host Hotels Resorts vs. Cellnex Telecom SA
Performance |
| Timeline |
| Host Hotels Resorts |
| Cellnex Telecom SA |
Host Hotels and Cellnex Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Host Hotels and Cellnex Telecom
The main advantage of trading using opposite Host Hotels and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Host Hotels position performs unexpectedly, Cellnex Telecom 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 Cellnex Telecom will offset losses from the drop in Cellnex Telecom's long position.| Host Hotels vs. Neometals | Host Hotels vs. Coor Service Management | Host Hotels vs. Aeorema Communications Plc | Host Hotels vs. JLEN Environmental Assets |
| Cellnex Telecom vs. Bellevue Healthcare Trust | Cellnex Telecom vs. PPHE Hotel Group | Cellnex Telecom vs. Host Hotels Resorts | Cellnex Telecom vs. Worldwide Healthcare Trust |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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