Correlation Between Uniper SE and Cellnex Telecom
Can any of the company-specific risk be diversified away by investing in both Uniper SE and Cellnex Telecom 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 Uniper SE and Cellnex Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uniper SE and Cellnex Telecom SA, you can compare the effects of market volatilities on Uniper SE and Cellnex Telecom 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 Uniper SE with a short position of Cellnex Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniper SE and Cellnex Telecom.
Diversification Opportunities for Uniper SE and Cellnex Telecom
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Uniper and Cellnex is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Uniper SE and Cellnex Telecom SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellnex Telecom SA and Uniper SE 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 Uniper SE are associated (or correlated) with Cellnex Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellnex Telecom SA has no effect on the direction of Uniper SE i.e., Uniper SE and Cellnex Telecom go up and down completely randomly.
Pair Corralation between Uniper SE and Cellnex Telecom
Assuming the 90 days trading horizon Uniper SE is expected to under-perform the Cellnex Telecom. In addition to that, Uniper SE is 2.41 times more volatile than Cellnex Telecom SA. It trades about 0.0 of its total potential returns per unit of risk. Cellnex Telecom SA is currently generating about 0.0 per unit of volatility. 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 Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uniper SE vs. Cellnex Telecom SA
Performance |
| Timeline |
| Uniper SE |
| Cellnex Telecom SA |
Uniper SE and Cellnex Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uniper SE and Cellnex Telecom
The main advantage of trading using opposite Uniper SE and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniper SE position performs unexpectedly, Cellnex Telecom 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 Cellnex Telecom will offset losses from the drop in Cellnex Telecom's long position.| Uniper SE vs. Mulberry Group PLC | Uniper SE vs. London Security Plc | Uniper SE vs. Triad Group PLC | Uniper SE vs. SURETRACK MON |
| Cellnex Telecom vs. Uniper SE | Cellnex Telecom vs. Mulberry Group PLC | Cellnex Telecom vs. London Security Plc | Cellnex Telecom vs. Triad Group PLC |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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