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
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cellnex and All is -0.49. 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 SA is expected to under-perform the All Iron. In addition to that, Cellnex Telecom is 2.12 times more volatile than All Iron Re. It trades about -0.04 of its total potential returns per unit of risk. All Iron Re is currently generating about 0.08 per unit of volatility. If you would invest 1,090 in All Iron Re on November 3, 2024 and sell it today you would earn a total of 30.00 from holding All Iron Re or generate 2.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| 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 SA |
| All Iron vs. Tier1 Technology SA | All Iron vs. Naturhouse Health SA | All Iron vs. Inhome Prime Properties | All Iron vs. Plasticos Compuestos 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |