Correlation Between Batm Advanced and Cellnex Telecom
Can any of the company-specific risk be diversified away by investing in both Batm Advanced 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 Batm Advanced and Cellnex Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Batm Advanced Communications and Cellnex Telecom SA, you can compare the effects of market volatilities on Batm Advanced 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 Batm Advanced with a short position of Cellnex Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Batm Advanced and Cellnex Telecom.
Diversification Opportunities for Batm Advanced and Cellnex Telecom
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Batm and Cellnex is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Batm Advanced Communications 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 Batm Advanced 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 Batm Advanced Communications 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 Batm Advanced i.e., Batm Advanced and Cellnex Telecom go up and down completely randomly.
Pair Corralation between Batm Advanced and Cellnex Telecom
Assuming the 90 days trading horizon Batm Advanced Communications is expected to under-perform the Cellnex Telecom. In addition to that, Batm Advanced is 2.08 times more volatile than Cellnex Telecom SA. It trades about -0.02 of its total potential returns per unit of risk. Cellnex Telecom SA is currently generating about 0.02 per unit of volatility. If you would invest 3,280 in Cellnex Telecom SA on September 3, 2024 and sell it today you would earn a total of 106.00 from holding Cellnex Telecom SA or generate 3.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Batm Advanced Communications vs. Cellnex Telecom SA
Performance |
| Timeline |
| Batm Advanced Commun |
| Cellnex Telecom SA |
Batm Advanced and Cellnex Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Batm Advanced and Cellnex Telecom
The main advantage of trading using opposite Batm Advanced and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Batm Advanced 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.| Batm Advanced vs. Ecclesiastical Insurance Office | Batm Advanced vs. Bank of Ireland | Batm Advanced vs. Erste Group Bank | Batm Advanced vs. Fortune Brands Home |
| Cellnex Telecom vs. Tatton Asset Management | Cellnex Telecom vs. Batm Advanced Communications | Cellnex Telecom vs. New Residential Investment | Cellnex Telecom vs. Elmos Semiconductor SE |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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