Correlation Between Colliers International and Cellnex Telecom
Can any of the company-specific risk be diversified away by investing in both Colliers International 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 Colliers International and Cellnex Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Colliers International Group and Cellnex Telecom SA, you can compare the effects of market volatilities on Colliers International 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 Colliers International with a short position of Cellnex Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Colliers International and Cellnex Telecom.
Diversification Opportunities for Colliers International and Cellnex Telecom
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Colliers and Cellnex is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Colliers International Group 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 Colliers International 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 Colliers International Group 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 Colliers International i.e., Colliers International and Cellnex Telecom go up and down completely randomly.
Pair Corralation between Colliers International and Cellnex Telecom
Given the investment horizon of 90 days Colliers International Group is expected to generate 0.84 times more return on investment than Cellnex Telecom. However, Colliers International Group is 1.19 times less risky than Cellnex Telecom. It trades about 0.04 of its potential returns per unit of risk. Cellnex Telecom SA is currently generating about -0.03 per unit of risk. If you would invest 12,635 in Colliers International Group on August 25, 2024 and sell it today you would earn a total of 1,938 from holding Colliers International Group or generate 15.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 82.97% |
| Values | Daily Returns |
Colliers International Group vs. Cellnex Telecom SA
Performance |
| Timeline |
| Colliers International |
| Cellnex Telecom SA |
Colliers International and Cellnex Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Colliers International and Cellnex Telecom
The main advantage of trading using opposite Colliers International and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Colliers International 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.| Colliers International vs. Frp Holdings Ord | Colliers International vs. Marcus Millichap | Colliers International vs. Maui Land Pineapple | Colliers International vs. J W Mays |
| Cellnex Telecom vs. CBRE Group Class | Cellnex Telecom vs. Cushman Wakefield plc | Cellnex Telecom vs. Newmark Group | Cellnex Telecom vs. Colliers International Group |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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