Correlation Between Cellnex Telecom and Hemogenyx Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Cellnex Telecom and Hemogenyx Pharmaceuticals 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 Hemogenyx Pharmaceuticals 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 Hemogenyx Pharmaceuticals PLC, you can compare the effects of market volatilities on Cellnex Telecom and Hemogenyx Pharmaceuticals 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 Hemogenyx Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellnex Telecom and Hemogenyx Pharmaceuticals.
Diversification Opportunities for Cellnex Telecom and Hemogenyx Pharmaceuticals
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cellnex and Hemogenyx is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Cellnex Telecom SA and Hemogenyx Pharmaceuticals PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hemogenyx Pharmaceuticals 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 Hemogenyx Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hemogenyx Pharmaceuticals has no effect on the direction of Cellnex Telecom i.e., Cellnex Telecom and Hemogenyx Pharmaceuticals go up and down completely randomly.
Pair Corralation between Cellnex Telecom and Hemogenyx Pharmaceuticals
Assuming the 90 days trading horizon Cellnex Telecom SA is expected to under-perform the Hemogenyx Pharmaceuticals. But the stock apears to be less risky and, when comparing its historical volatility, Cellnex Telecom SA is 37.4 times less risky than Hemogenyx Pharmaceuticals. The stock trades about -0.02 of its potential returns per unit of risk. The Hemogenyx Pharmaceuticals PLC is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 96,000 in Hemogenyx Pharmaceuticals PLC on October 11, 2024 and sell it today you would lose (57,250) from holding Hemogenyx Pharmaceuticals PLC or give up 59.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cellnex Telecom SA vs. Hemogenyx Pharmaceuticals PLC
Performance |
| Timeline |
| Cellnex Telecom SA |
| Hemogenyx Pharmaceuticals |
Cellnex Telecom and Hemogenyx Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cellnex Telecom and Hemogenyx Pharmaceuticals
The main advantage of trading using opposite Cellnex Telecom and Hemogenyx Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellnex Telecom position performs unexpectedly, Hemogenyx Pharmaceuticals 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 Hemogenyx Pharmaceuticals will offset losses from the drop in Hemogenyx Pharmaceuticals' long position.| Cellnex Telecom vs. United Internet AG | Cellnex Telecom vs. Medical Properties Trust | Cellnex Telecom vs. Spirent Communications plc | Cellnex Telecom vs. Aeorema Communications Plc |
| Hemogenyx Pharmaceuticals vs. Elmos Semiconductor SE | Hemogenyx Pharmaceuticals vs. Zoom Video Communications | Hemogenyx Pharmaceuticals vs. Cars Inc | Hemogenyx Pharmaceuticals vs. Cellnex Telecom SA |
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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