Correlation Between Bridgemarq Real and Cellnex Telecom
Can any of the company-specific risk be diversified away by investing in both Bridgemarq Real 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 Bridgemarq Real and Cellnex Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bridgemarq Real Estate and Cellnex Telecom SA, you can compare the effects of market volatilities on Bridgemarq Real 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 Bridgemarq Real with a short position of Cellnex Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgemarq Real and Cellnex Telecom.
Diversification Opportunities for Bridgemarq Real and Cellnex Telecom
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bridgemarq and Cellnex is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Bridgemarq Real Estate 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 Bridgemarq Real 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 Bridgemarq Real Estate 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 Bridgemarq Real i.e., Bridgemarq Real and Cellnex Telecom go up and down completely randomly.
Pair Corralation between Bridgemarq Real and Cellnex Telecom
Assuming the 90 days horizon Bridgemarq Real Estate is expected to generate 0.88 times more return on investment than Cellnex Telecom. However, Bridgemarq Real Estate is 1.13 times less risky than Cellnex Telecom. 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 1,078 in Bridgemarq Real Estate on September 19, 2024 and sell it today you would lose (20.00) from holding Bridgemarq Real Estate or give up 1.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 92.86% |
| Values | Daily Returns |
Bridgemarq Real Estate vs. Cellnex Telecom SA
Performance |
| Timeline |
| Bridgemarq Real Estate |
| Cellnex Telecom SA |
Bridgemarq Real and Cellnex Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgemarq Real and Cellnex Telecom
The main advantage of trading using opposite Bridgemarq Real and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgemarq Real 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.| Bridgemarq Real vs. Ashford Hospitality Trust | Bridgemarq Real vs. Ashford Hospitality Trust | Bridgemarq Real vs. Braemar Hotels Resorts | Bridgemarq Real vs. Braemar Hotels Resorts |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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