Correlation Between Asia Pptys and Cellnex Telecom
Can any of the company-specific risk be diversified away by investing in both Asia Pptys 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 Asia Pptys and Cellnex Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Pptys and Cellnex Telecom SA, you can compare the effects of market volatilities on Asia Pptys 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 Asia Pptys with a short position of Cellnex Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Pptys and Cellnex Telecom.
Diversification Opportunities for Asia Pptys and Cellnex Telecom
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asia and Cellnex is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Asia Pptys 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 Asia Pptys 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 Asia Pptys 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 Asia Pptys i.e., Asia Pptys and Cellnex Telecom go up and down completely randomly.
Pair Corralation between Asia Pptys and Cellnex Telecom
Given the investment horizon of 90 days Asia Pptys is expected to generate 17.89 times more return on investment than Cellnex Telecom. However, Asia Pptys is 17.89 times more volatile than Cellnex Telecom SA. It trades about 0.02 of its potential returns per unit of risk. Cellnex Telecom SA is currently generating about -0.24 per unit of risk. If you would invest 6.45 in Asia Pptys on September 19, 2024 and sell it today you would lose (4.34) from holding Asia Pptys or give up 67.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Pptys vs. Cellnex Telecom SA
Performance |
| Timeline |
| Asia Pptys |
| Cellnex Telecom SA |
Asia Pptys and Cellnex Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Pptys and Cellnex Telecom
The main advantage of trading using opposite Asia Pptys and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Pptys 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.| Asia Pptys vs. Adler Group SA | Asia Pptys vs. Ambase Corp | Asia Pptys vs. Bridgemarq Real Estate | Asia Pptys vs. Agritek Holdings |
| Cellnex Telecom vs. Asia Pptys | Cellnex Telecom vs. Adler Group SA | Cellnex Telecom vs. Ambase Corp | Cellnex Telecom vs. Bridgemarq Real Estate |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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