Correlation Between Cellnex Telecom and Lindsell Train
Can any of the company-specific risk be diversified away by investing in both Cellnex Telecom and Lindsell Train 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 Lindsell Train 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 Lindsell Train Investment, you can compare the effects of market volatilities on Cellnex Telecom and Lindsell Train 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 Lindsell Train. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellnex Telecom and Lindsell Train.
Diversification Opportunities for Cellnex Telecom and Lindsell Train
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cellnex and Lindsell is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Cellnex Telecom SA and Lindsell Train Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lindsell Train Investment 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 Lindsell Train. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lindsell Train Investment has no effect on the direction of Cellnex Telecom i.e., Cellnex Telecom and Lindsell Train go up and down completely randomly.
Pair Corralation between Cellnex Telecom and Lindsell Train
Assuming the 90 days trading horizon Cellnex Telecom SA is expected to generate 1.13 times more return on investment than Lindsell Train. However, Cellnex Telecom is 1.13 times more volatile than Lindsell Train Investment. It trades about -0.01 of its potential returns per unit of risk. Lindsell Train Investment is currently generating about -0.02 per unit of risk. If you would invest 3,623 in Cellnex Telecom SA on October 27, 2024 and sell it today you would lose (466.00) from holding Cellnex Telecom SA or give up 12.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Cellnex Telecom SA vs. Lindsell Train Investment
Performance |
| Timeline |
| Cellnex Telecom SA |
| Lindsell Train Investment |
Cellnex Telecom and Lindsell Train Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cellnex Telecom and Lindsell Train
The main advantage of trading using opposite Cellnex Telecom and Lindsell Train positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellnex Telecom position performs unexpectedly, Lindsell Train 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 Lindsell Train will offset losses from the drop in Lindsell Train's long position.| Cellnex Telecom vs. Zinc Media Group | Cellnex Telecom vs. Catalyst Media Group | Cellnex Telecom vs. G5 Entertainment AB | Cellnex Telecom vs. Arrow Electronics |
| Lindsell Train vs. Gaztransport et Technigaz | Lindsell Train vs. Auto Trader Group | Lindsell Train vs. Thor Mining PLC | Lindsell Train vs. Flow Traders NV |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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