Correlation Between Cellnex Telecom and Indexa Capital
Can any of the company-specific risk be diversified away by investing in both Cellnex Telecom and Indexa Capital 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 Indexa Capital 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 Indexa Capital Group,, you can compare the effects of market volatilities on Cellnex Telecom and Indexa Capital 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 Indexa Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellnex Telecom and Indexa Capital.
Diversification Opportunities for Cellnex Telecom and Indexa Capital
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cellnex and Indexa is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Cellnex Telecom SA and Indexa Capital Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indexa Capital Group, 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 Indexa Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indexa Capital Group, has no effect on the direction of Cellnex Telecom i.e., Cellnex Telecom and Indexa Capital go up and down completely randomly.
Pair Corralation between Cellnex Telecom and Indexa Capital
Assuming the 90 days trading horizon Cellnex Telecom SA is expected to under-perform the Indexa Capital. In addition to that, Cellnex Telecom is 4.13 times more volatile than Indexa Capital Group,. It trades about -0.13 of its total potential returns per unit of risk. Indexa Capital Group, is currently generating about -0.41 per unit of volatility. If you would invest 990.00 in Indexa Capital Group, on August 29, 2024 and sell it today you would lose (65.00) from holding Indexa Capital Group, or give up 6.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cellnex Telecom SA vs. Indexa Capital Group,
Performance |
| Timeline |
| Cellnex Telecom SA |
| Indexa Capital Group, |
Cellnex Telecom and Indexa Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cellnex Telecom and Indexa Capital
The main advantage of trading using opposite Cellnex Telecom and Indexa Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellnex Telecom position performs unexpectedly, Indexa Capital 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 Indexa Capital will offset losses from the drop in Indexa Capital's long position.| Cellnex Telecom vs. ACS Actividades de | Cellnex Telecom vs. Ferrovial | Cellnex Telecom vs. Melia Hotels | Cellnex Telecom vs. Metrovacesa SA |
| Indexa Capital vs. Petroleo Brasileiro SA | Indexa Capital vs. Banco Santander | Indexa Capital vs. Caixabank SA | Indexa Capital vs. Cellnex Telecom SA |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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