Correlation Between Cellnex Telecom and Metrospaces
Can any of the company-specific risk be diversified away by investing in both Cellnex Telecom and Metrospaces 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 Metrospaces 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 Metrospaces, you can compare the effects of market volatilities on Cellnex Telecom and Metrospaces 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 Metrospaces. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellnex Telecom and Metrospaces.
Diversification Opportunities for Cellnex Telecom and Metrospaces
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cellnex and Metrospaces is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Cellnex Telecom SA and Metrospaces in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metrospaces 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 Metrospaces. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metrospaces has no effect on the direction of Cellnex Telecom i.e., Cellnex Telecom and Metrospaces go up and down completely randomly.
Pair Corralation between Cellnex Telecom and Metrospaces
Assuming the 90 days horizon Cellnex Telecom is expected to generate 1071.55 times less return on investment than Metrospaces. But when comparing it to its historical volatility, Cellnex Telecom SA is 129.72 times less risky than Metrospaces. It trades about 0.03 of its potential returns per unit of risk. Metrospaces is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Metrospaces on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Metrospaces or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cellnex Telecom SA vs. Metrospaces
Performance |
| Timeline |
| Cellnex Telecom SA |
| Metrospaces |
Cellnex Telecom and Metrospaces Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cellnex Telecom and Metrospaces
The main advantage of trading using opposite Cellnex Telecom and Metrospaces positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellnex Telecom position performs unexpectedly, Metrospaces 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 Metrospaces will offset losses from the drop in Metrospaces' 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 |
| Metrospaces vs. CBRE Group Class | Metrospaces vs. CoStar Group | Metrospaces vs. Cellnex Telecom SA | Metrospaces vs. Ke Holdings |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Stocks Directory Find actively traded stocks across global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |