Correlation Between Cellnex Telecom and Cushman Wakefield
Can any of the company-specific risk be diversified away by investing in both Cellnex Telecom and Cushman Wakefield 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 Cushman Wakefield 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 Cushman Wakefield plc, you can compare the effects of market volatilities on Cellnex Telecom and Cushman Wakefield 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 Cushman Wakefield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellnex Telecom and Cushman Wakefield.
Diversification Opportunities for Cellnex Telecom and Cushman Wakefield
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cellnex and Cushman is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Cellnex Telecom SA and Cushman Wakefield plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cushman Wakefield plc 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 Cushman Wakefield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cushman Wakefield plc has no effect on the direction of Cellnex Telecom i.e., Cellnex Telecom and Cushman Wakefield go up and down completely randomly.
Pair Corralation between Cellnex Telecom and Cushman Wakefield
Assuming the 90 days horizon Cellnex Telecom SA is expected to under-perform the Cushman Wakefield. But the pink sheet apears to be less risky and, when comparing its historical volatility, Cellnex Telecom SA is 2.34 times less risky than Cushman Wakefield. The pink sheet trades about -0.15 of its potential returns per unit of risk. The Cushman Wakefield plc is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,355 in Cushman Wakefield plc on September 1, 2024 and sell it today you would earn a total of 175.00 from holding Cushman Wakefield plc or generate 12.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cellnex Telecom SA vs. Cushman Wakefield plc
Performance |
| Timeline |
| Cellnex Telecom SA |
| Cushman Wakefield plc |
Cellnex Telecom and Cushman Wakefield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cellnex Telecom and Cushman Wakefield
The main advantage of trading using opposite Cellnex Telecom and Cushman Wakefield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellnex Telecom position performs unexpectedly, Cushman Wakefield 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 Cushman Wakefield will offset losses from the drop in Cushman Wakefield's long position.| Cellnex Telecom vs. CBRE Group Class | Cellnex Telecom vs. Cushman Wakefield plc | Cellnex Telecom vs. Newmark Group | Cellnex Telecom vs. Colliers International Group |
| Cushman Wakefield vs. Re Max Holding | Cushman Wakefield vs. Marcus Millichap | Cushman Wakefield vs. Frp Holdings Ord | Cushman Wakefield vs. Maui Land Pineapple |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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