Correlation Between METRO AG and Cellnex Telecom
Can any of the company-specific risk be diversified away by investing in both METRO AG 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 METRO AG and Cellnex Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between METRO AG and Cellnex Telecom SA, you can compare the effects of market volatilities on METRO AG 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 METRO AG with a short position of Cellnex Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of METRO AG and Cellnex Telecom.
Diversification Opportunities for METRO AG and Cellnex Telecom
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between METRO and Cellnex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding METRO AG 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 METRO AG 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 METRO AG 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 METRO AG i.e., METRO AG and Cellnex Telecom go up and down completely randomly.
Pair Corralation between METRO AG and Cellnex Telecom
If you would invest (100.00) in METRO AG on September 12, 2024 and sell it today you would earn a total of 100.00 from holding METRO AG or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
METRO AG vs. Cellnex Telecom SA
Performance |
| Timeline |
| METRO AG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cellnex Telecom SA |
METRO AG and Cellnex Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with METRO AG and Cellnex Telecom
The main advantage of trading using opposite METRO AG and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if METRO AG 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.| METRO AG vs. Everyman Media Group | METRO AG vs. Indutrade AB | METRO AG vs. Vienna Insurance Group | METRO AG vs. Hollywood Bowl Group |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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