Correlation Between Cellnex Telecom and All Iron
Can any of the company-specific risk be diversified away by investing in both Cellnex Telecom and All Iron 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 All Iron 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 All Iron Re, you can compare the effects of market volatilities on Cellnex Telecom and All Iron 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 All Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellnex Telecom and All Iron.
Diversification Opportunities for Cellnex Telecom and All Iron
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cellnex and All is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Cellnex Telecom SA and All Iron Re in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on All Iron Re 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 All Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of All Iron Re has no effect on the direction of Cellnex Telecom i.e., Cellnex Telecom and All Iron go up and down completely randomly.
Pair Corralation between Cellnex Telecom and All Iron
Assuming the 90 days trading horizon Cellnex Telecom is expected to generate 3.49 times less return on investment than All Iron. But when comparing it to its historical volatility, Cellnex Telecom SA is 1.47 times less risky than All Iron. It trades about 0.0 of its potential returns per unit of risk. All Iron Re is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,100 in All Iron Re on August 24, 2024 and sell it today you would lose (50.00) from holding All Iron Re or give up 4.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.41% |
| Values | Daily Returns |
Cellnex Telecom SA vs. All Iron Re
Performance |
| Timeline |
| Cellnex Telecom SA |
| All Iron Re |
Cellnex Telecom and All Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cellnex Telecom and All Iron
The main advantage of trading using opposite Cellnex Telecom and All Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellnex Telecom position performs unexpectedly, All Iron 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 All Iron will offset losses from the drop in All Iron's long position.| Cellnex Telecom vs. Grifols SA | Cellnex Telecom vs. Aena SA | Cellnex Telecom vs. ACS Actividades de | Cellnex Telecom vs. Ferrovial |
| All Iron vs. Plasticos Compuestos SA | All Iron vs. Melia Hotels | All Iron vs. Cellnex Telecom SA | All Iron vs. Arrienda Rental Properties |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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