Correlation Between Cellnex Telecom and Delivery Hero
Can any of the company-specific risk be diversified away by investing in both Cellnex Telecom and Delivery Hero 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 Delivery Hero 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 Delivery Hero SE, you can compare the effects of market volatilities on Cellnex Telecom and Delivery Hero 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 Delivery Hero. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellnex Telecom and Delivery Hero.
Diversification Opportunities for Cellnex Telecom and Delivery Hero
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cellnex and Delivery is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Cellnex Telecom SA and Delivery Hero SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delivery Hero SE 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 Delivery Hero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delivery Hero SE has no effect on the direction of Cellnex Telecom i.e., Cellnex Telecom and Delivery Hero go up and down completely randomly.
Pair Corralation between Cellnex Telecom and Delivery Hero
Assuming the 90 days horizon Cellnex Telecom SA is expected to generate 0.55 times more return on investment than Delivery Hero. However, Cellnex Telecom SA is 1.82 times less risky than Delivery Hero. It trades about -0.12 of its potential returns per unit of risk. Delivery Hero SE is currently generating about -0.08 per unit of risk. If you would invest 1,868 in Cellnex Telecom SA on August 30, 2024 and sell it today you would lose (112.00) from holding Cellnex Telecom SA or give up 6.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cellnex Telecom SA vs. Delivery Hero SE
Performance |
| Timeline |
| Cellnex Telecom SA |
| Delivery Hero SE |
Cellnex Telecom and Delivery Hero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cellnex Telecom and Delivery Hero
The main advantage of trading using opposite Cellnex Telecom and Delivery Hero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellnex Telecom position performs unexpectedly, Delivery Hero 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 Delivery Hero will offset losses from the drop in Delivery Hero'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 |
| Delivery Hero vs. ZALANDO SE ADR | Delivery Hero vs. Cellnex Telecom SA | Delivery Hero vs. Jd Com Inc | Delivery Hero vs. Galaxy Entertainment 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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