Correlation Between Cellnex Telecom and Cellnex Telecom
Can any of the company-specific risk be diversified away by investing in both Cellnex Telecom 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 Cellnex Telecom and Cellnex Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cellnex Telecom SA and Cellnex Telecom SA, you can compare the effects of market volatilities on Cellnex Telecom 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 Cellnex Telecom with a short position of Cellnex Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellnex Telecom and Cellnex Telecom.
Diversification Opportunities for Cellnex Telecom and Cellnex Telecom
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cellnex and Cellnex is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Cellnex Telecom SA 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 Cellnex Telecom 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 Cellnex Telecom SA 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 Cellnex Telecom i.e., Cellnex Telecom and Cellnex Telecom go up and down completely randomly.
Pair Corralation between Cellnex Telecom and Cellnex Telecom
Assuming the 90 days horizon Cellnex Telecom is expected to generate 1.43 times less return on investment than Cellnex Telecom. But when comparing it to its historical volatility, Cellnex Telecom SA is 1.28 times less risky than Cellnex Telecom. It trades about 0.01 of its potential returns per unit of risk. Cellnex Telecom SA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,440 in Cellnex Telecom SA on August 29, 2024 and sell it today you would earn a total of 49.00 from holding Cellnex Telecom SA or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 87.1% |
| Values | Daily Returns |
Cellnex Telecom SA vs. Cellnex Telecom SA
Performance |
| Timeline |
| Cellnex Telecom SA |
| Cellnex Telecom SA |
Cellnex Telecom and Cellnex Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cellnex Telecom and Cellnex Telecom
The main advantage of trading using opposite Cellnex Telecom and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellnex Telecom 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.| Cellnex Telecom vs. Jones Lang LaSalle | Cellnex Telecom vs. Cushman Wakefield plc | Cellnex Telecom vs. Colliers International Group | Cellnex Telecom vs. CoStar Group |
| 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |