Correlation Between Cellnex Telecom and Uniper SE
Can any of the company-specific risk be diversified away by investing in both Cellnex Telecom and Uniper SE 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 Uniper SE 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 Uniper SE, you can compare the effects of market volatilities on Cellnex Telecom and Uniper SE 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 Uniper SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellnex Telecom and Uniper SE.
Diversification Opportunities for Cellnex Telecom and Uniper SE
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cellnex and Uniper is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Cellnex Telecom SA and Uniper SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniper SE 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 Uniper SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uniper SE has no effect on the direction of Cellnex Telecom i.e., Cellnex Telecom and Uniper SE go up and down completely randomly.
Pair Corralation between Cellnex Telecom and Uniper SE
Assuming the 90 days trading horizon Cellnex Telecom is expected to generate 1.74 times less return on investment than Uniper SE. In addition to that, Cellnex Telecom is 1.07 times more volatile than Uniper SE. It trades about 0.16 of its total potential returns per unit of risk. Uniper SE is currently generating about 0.3 per unit of volatility. If you would invest 3,939 in Uniper SE on October 23, 2024 and sell it today you would earn a total of 508.00 from holding Uniper SE or generate 12.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Cellnex Telecom SA vs. Uniper SE
Performance |
| Timeline |
| Cellnex Telecom SA |
| Uniper SE |
Cellnex Telecom and Uniper SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cellnex Telecom and Uniper SE
The main advantage of trading using opposite Cellnex Telecom and Uniper SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellnex Telecom position performs unexpectedly, Uniper SE 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 Uniper SE will offset losses from the drop in Uniper SE's long position.| Cellnex Telecom vs. Primorus Investments plc | Cellnex Telecom vs. Mobius Investment Trust | Cellnex Telecom vs. CAP LEASE AVIATION | Cellnex Telecom vs. Beeks Trading |
| Uniper SE vs. Ashtead Technology Holdings | Uniper SE vs. Sunny Optical Technology | Uniper SE vs. Alfa Financial Software | Uniper SE vs. Accesso Technology 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |