Correlation Between Cellnex Telecom and Catalyst Media
Can any of the company-specific risk be diversified away by investing in both Cellnex Telecom and Catalyst Media 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 Catalyst Media 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 Catalyst Media Group, you can compare the effects of market volatilities on Cellnex Telecom and Catalyst Media 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 Catalyst Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellnex Telecom and Catalyst Media.
Diversification Opportunities for Cellnex Telecom and Catalyst Media
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cellnex and Catalyst is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Cellnex Telecom SA and Catalyst Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Media Group 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 Catalyst Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Media Group has no effect on the direction of Cellnex Telecom i.e., Cellnex Telecom and Catalyst Media go up and down completely randomly.
Pair Corralation between Cellnex Telecom and Catalyst Media
Assuming the 90 days trading horizon Cellnex Telecom SA is expected to generate 0.96 times more return on investment than Catalyst Media. However, Cellnex Telecom SA is 1.04 times less risky than Catalyst Media. It trades about 0.0 of its potential returns per unit of risk. Catalyst Media Group is currently generating about -0.02 per unit of risk. If you would invest 3,120 in Cellnex Telecom SA on September 23, 2024 and sell it today you would lose (91.00) from holding Cellnex Telecom SA or give up 2.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Cellnex Telecom SA vs. Catalyst Media Group
Performance |
| Timeline |
| Cellnex Telecom SA |
| Catalyst Media Group |
Cellnex Telecom and Catalyst Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cellnex Telecom and Catalyst Media
The main advantage of trading using opposite Cellnex Telecom and Catalyst Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellnex Telecom position performs unexpectedly, Catalyst Media 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 Catalyst Media will offset losses from the drop in Catalyst Media's long position.| Cellnex Telecom vs. Uniper SE | Cellnex Telecom vs. Mulberry Group PLC | Cellnex Telecom vs. London Security Plc | Cellnex Telecom vs. Triad Group PLC |
| Catalyst Media vs. Cellnex Telecom SA | Catalyst Media vs. CAP LEASE AVIATION | Catalyst Media vs. Zoom Video Communications | Catalyst Media vs. Compagnie Plastic Omnium |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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