Correlation Between Cellnex Telecom and Sydbank
Can any of the company-specific risk be diversified away by investing in both Cellnex Telecom and Sydbank 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 Cellnex Telecom and Sydbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cellnex Telecom SA and Sydbank, you can compare the effects of market volatilities on Cellnex Telecom and Sydbank 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 Cellnex Telecom with a short position of Sydbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellnex Telecom and Sydbank.
Diversification Opportunities for Cellnex Telecom and Sydbank
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cellnex and Sydbank is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Cellnex Telecom SA and Sydbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sydbank and Cellnex Telecom 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 Cellnex Telecom SA are associated (or correlated) with Sydbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sydbank has no effect on the direction of Cellnex Telecom i.e., Cellnex Telecom and Sydbank go up and down completely randomly.
Pair Corralation between Cellnex Telecom and Sydbank
Assuming the 90 days trading horizon Cellnex Telecom SA is expected to under-perform the Sydbank. But the stock apears to be less risky and, when comparing its historical volatility, Cellnex Telecom SA is 1.08 times less risky than Sydbank. The stock trades about -0.07 of its potential returns per unit of risk. The Sydbank is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 38,060 in Sydbank on October 17, 2024 and sell it today you would lose (260.00) from holding Sydbank or give up 0.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cellnex Telecom SA vs. Sydbank
Performance |
| Timeline |
| Cellnex Telecom SA |
| Sydbank |
Cellnex Telecom and Sydbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cellnex Telecom and Sydbank
The main advantage of trading using opposite Cellnex Telecom and Sydbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellnex Telecom position performs unexpectedly, Sydbank 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 Sydbank will offset losses from the drop in Sydbank's long position.| Cellnex Telecom vs. Bisichi Mining PLC | Cellnex Telecom vs. Thor Mining PLC | Cellnex Telecom vs. PPHE Hotel Group | Cellnex Telecom vs. Rheinmetall AG |
| Sydbank vs. Cellnex Telecom SA | Sydbank vs. URU Metals | Sydbank vs. Gamma Communications PLC | Sydbank vs. Universal Music Group |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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