Correlation Between Cellnex Telecom and Labiana Health
Can any of the company-specific risk be diversified away by investing in both Cellnex Telecom and Labiana Health 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 Labiana Health 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 Labiana Health SA, you can compare the effects of market volatilities on Cellnex Telecom and Labiana Health 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 Labiana Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellnex Telecom and Labiana Health.
Diversification Opportunities for Cellnex Telecom and Labiana Health
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cellnex and Labiana is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Cellnex Telecom SA and Labiana Health SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Labiana Health SA 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 Labiana Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Labiana Health SA has no effect on the direction of Cellnex Telecom i.e., Cellnex Telecom and Labiana Health go up and down completely randomly.
Pair Corralation between Cellnex Telecom and Labiana Health
Assuming the 90 days trading horizon Cellnex Telecom SA is expected to generate 0.41 times more return on investment than Labiana Health. However, Cellnex Telecom SA is 2.42 times less risky than Labiana Health. It trades about -0.12 of its potential returns per unit of risk. Labiana Health SA is currently generating about -0.17 per unit of risk. If you would invest 3,523 in Cellnex Telecom SA on August 24, 2024 and sell it today you would lose (369.00) from holding Cellnex Telecom SA or give up 10.47% 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. Labiana Health SA
Performance |
| Timeline |
| Cellnex Telecom SA |
| Labiana Health SA |
Cellnex Telecom and Labiana Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cellnex Telecom and Labiana Health
The main advantage of trading using opposite Cellnex Telecom and Labiana Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellnex Telecom position performs unexpectedly, Labiana Health 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 Labiana Health will offset losses from the drop in Labiana Health's long position.| Cellnex Telecom vs. Grifols SA | Cellnex Telecom vs. Aena SA | Cellnex Telecom vs. ACS Actividades de | Cellnex Telecom vs. Ferrovial |
| Labiana Health vs. Technomeca Aerospace SA | Labiana Health vs. Squirrel Media SA | Labiana Health vs. NH Hoteles | Labiana Health vs. Techo Hogar SOCIMI, |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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