Correlation Between Cellnex Telecom and Atresmedia Corporacin
Can any of the company-specific risk be diversified away by investing in both Cellnex Telecom and Atresmedia Corporacin 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 Atresmedia Corporacin 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 Atresmedia Corporacin de, you can compare the effects of market volatilities on Cellnex Telecom and Atresmedia Corporacin 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 Atresmedia Corporacin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellnex Telecom and Atresmedia Corporacin.
Diversification Opportunities for Cellnex Telecom and Atresmedia Corporacin
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cellnex and Atresmedia is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Cellnex Telecom SA and Atresmedia Corporacin de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atresmedia Corporacin 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 Atresmedia Corporacin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atresmedia Corporacin has no effect on the direction of Cellnex Telecom i.e., Cellnex Telecom and Atresmedia Corporacin go up and down completely randomly.
Pair Corralation between Cellnex Telecom and Atresmedia Corporacin
Assuming the 90 days trading horizon Cellnex Telecom SA is expected to under-perform the Atresmedia Corporacin. In addition to that, Cellnex Telecom is 1.48 times more volatile than Atresmedia Corporacin de. It trades about -0.25 of its total potential returns per unit of risk. Atresmedia Corporacin de is currently generating about -0.08 per unit of volatility. If you would invest 464.00 in Atresmedia Corporacin de on August 24, 2024 and sell it today you would lose (10.00) from holding Atresmedia Corporacin de or give up 2.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cellnex Telecom SA vs. Atresmedia Corporacin de
Performance |
| Timeline |
| Cellnex Telecom SA |
| Atresmedia Corporacin |
Cellnex Telecom and Atresmedia Corporacin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cellnex Telecom and Atresmedia Corporacin
The main advantage of trading using opposite Cellnex Telecom and Atresmedia Corporacin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellnex Telecom position performs unexpectedly, Atresmedia Corporacin 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 Atresmedia Corporacin will offset losses from the drop in Atresmedia Corporacin's long position.| Cellnex Telecom vs. Grifols SA | Cellnex Telecom vs. Aena SA | Cellnex Telecom vs. ACS Actividades de | Cellnex Telecom vs. Ferrovial |
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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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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