Correlation Between Compagnie Plastic and Cellnex Telecom
Can any of the company-specific risk be diversified away by investing in both Compagnie Plastic 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 Compagnie Plastic and Cellnex Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compagnie Plastic Omnium and Cellnex Telecom SA, you can compare the effects of market volatilities on Compagnie Plastic 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 Compagnie Plastic with a short position of Cellnex Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compagnie Plastic and Cellnex Telecom.
Diversification Opportunities for Compagnie Plastic and Cellnex Telecom
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Compagnie and Cellnex is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Compagnie Plastic Omnium 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 Compagnie Plastic 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 Compagnie Plastic Omnium 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 Compagnie Plastic i.e., Compagnie Plastic and Cellnex Telecom go up and down completely randomly.
Pair Corralation between Compagnie Plastic and Cellnex Telecom
Assuming the 90 days trading horizon Compagnie Plastic Omnium is expected to generate 1.03 times more return on investment than Cellnex Telecom. However, Compagnie Plastic is 1.03 times more volatile than Cellnex Telecom SA. It trades about 0.12 of its potential returns per unit of risk. Cellnex Telecom SA is currently generating about -0.41 per unit of risk. If you would invest 995.00 in Compagnie Plastic Omnium on October 12, 2024 and sell it today you would earn a total of 41.00 from holding Compagnie Plastic Omnium or generate 4.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compagnie Plastic Omnium vs. Cellnex Telecom SA
Performance |
| Timeline |
| Compagnie Plastic Omnium |
| Cellnex Telecom SA |
Compagnie Plastic and Cellnex Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compagnie Plastic and Cellnex Telecom
The main advantage of trading using opposite Compagnie Plastic and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compagnie Plastic 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.| Compagnie Plastic vs. Walmart | Compagnie Plastic vs. BYD Co | Compagnie Plastic vs. Volkswagen AG | Compagnie Plastic vs. Volkswagen AG Non Vtg |
| Cellnex Telecom vs. Taylor Maritime Investments | Cellnex Telecom vs. Compagnie Plastic Omnium | Cellnex Telecom vs. Datagroup SE | Cellnex Telecom vs. Monks Investment 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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