Correlation Between Cellnex Telecom and Vantage Towers
Can any of the company-specific risk be diversified away by investing in both Cellnex Telecom and Vantage Towers 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 Vantage Towers 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 Vantage Towers AG, you can compare the effects of market volatilities on Cellnex Telecom and Vantage Towers 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 Vantage Towers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellnex Telecom and Vantage Towers.
Diversification Opportunities for Cellnex Telecom and Vantage Towers
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cellnex and Vantage is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Cellnex Telecom SA and Vantage Towers AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vantage Towers AG 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 Vantage Towers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vantage Towers AG has no effect on the direction of Cellnex Telecom i.e., Cellnex Telecom and Vantage Towers go up and down completely randomly.
Pair Corralation between Cellnex Telecom and Vantage Towers
Assuming the 90 days horizon Cellnex Telecom SA is expected to under-perform the Vantage Towers. In addition to that, Cellnex Telecom is 4.75 times more volatile than Vantage Towers AG. It trades about -0.05 of its total potential returns per unit of risk. Vantage Towers AG is currently generating about 0.1 per unit of volatility. If you would invest 3,857 in Vantage Towers AG on November 2, 2024 and sell it today you would earn a total of 149.00 from holding Vantage Towers AG or generate 3.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.2% |
| Values | Daily Returns |
Cellnex Telecom SA vs. Vantage Towers AG
Performance |
| Timeline |
| Cellnex Telecom SA |
| Vantage Towers AG |
Cellnex Telecom and Vantage Towers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cellnex Telecom and Vantage Towers
The main advantage of trading using opposite Cellnex Telecom and Vantage Towers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellnex Telecom position performs unexpectedly, Vantage Towers 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 Vantage Towers will offset losses from the drop in Vantage Towers' 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 |
| Vantage Towers vs. Redfin Corp | Vantage Towers vs. Offerpad Solutions | Vantage Towers vs. eXp World Holdings | Vantage Towers vs. Ohmyhome Limited Ordinary |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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