Correlation Between DAX Index and Cellnex Telecom
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By analyzing existing cross correlation between DAX Index and Cellnex Telecom SA, you can compare the effects of market volatilities on DAX Index and Cellnex Telecom 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 DAX Index with a short position of Cellnex Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Cellnex Telecom.
Diversification Opportunities for DAX Index and Cellnex Telecom
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between DAX and Cellnex is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Cellnex Telecom SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellnex Telecom SA and DAX Index 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 DAX Index are associated (or correlated) with Cellnex Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellnex Telecom SA has no effect on the direction of DAX Index i.e., DAX Index and Cellnex Telecom go up and down completely randomly.
Pair Corralation between DAX Index and Cellnex Telecom
Assuming the 90 days trading horizon DAX Index is expected to generate 0.56 times more return on investment than Cellnex Telecom. However, DAX Index is 1.8 times less risky than Cellnex Telecom. It trades about 0.18 of its potential returns per unit of risk. Cellnex Telecom SA is currently generating about 0.1 per unit of risk. If you would invest 2,172,720 in DAX Index on December 1, 2024 and sell it today you would earn a total of 82,423 from holding DAX Index or generate 3.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
DAX Index vs. Cellnex Telecom SA
Performance |
| Timeline |
DAX Index and Cellnex Telecom Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Cellnex Telecom SA
Pair trading matchups for Cellnex Telecom
Pair Trading with DAX Index and Cellnex Telecom
The main advantage of trading using opposite DAX Index and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Cellnex Telecom 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 Cellnex Telecom will offset losses from the drop in Cellnex Telecom's long position.| DAX Index vs. Phibro Animal Health | DAX Index vs. Cardinal Health | DAX Index vs. Siemens Healthineers AG | DAX Index vs. CARDINAL HEALTH |
| Cellnex Telecom vs. LG Display Co | Cellnex Telecom vs. TRAVEL LEISURE DL 01 | Cellnex Telecom vs. BRIT AMER TOBACCO | Cellnex Telecom vs. Gaming and Leisure |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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