Correlation Between HelloFresh and Cellnex Telecom
Can any of the company-specific risk be diversified away by investing in both HelloFresh and Cellnex Telecom 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 HelloFresh and Cellnex Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HelloFresh SE and Cellnex Telecom SA, you can compare the effects of market volatilities on HelloFresh 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 HelloFresh with a short position of Cellnex Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of HelloFresh and Cellnex Telecom.
Diversification Opportunities for HelloFresh and Cellnex Telecom
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HelloFresh and Cellnex is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding HelloFresh SE 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 HelloFresh 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 HelloFresh SE 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 HelloFresh i.e., HelloFresh and Cellnex Telecom go up and down completely randomly.
Pair Corralation between HelloFresh and Cellnex Telecom
Assuming the 90 days horizon HelloFresh SE is expected to generate 4.08 times more return on investment than Cellnex Telecom. However, HelloFresh is 4.08 times more volatile than Cellnex Telecom SA. It trades about 0.07 of its potential returns per unit of risk. Cellnex Telecom SA is currently generating about -0.17 per unit of risk. If you would invest 1,059 in HelloFresh SE on August 30, 2024 and sell it today you would earn a total of 127.00 from holding HelloFresh SE or generate 11.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HelloFresh SE vs. Cellnex Telecom SA
Performance |
| Timeline |
| HelloFresh SE |
| Cellnex Telecom SA |
HelloFresh and Cellnex Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HelloFresh and Cellnex Telecom
The main advantage of trading using opposite HelloFresh and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HelloFresh 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.| HelloFresh vs. Biglari Holdings | HelloFresh vs. Potbelly Co | HelloFresh vs. Restaurant Brands International | HelloFresh vs. Red Robin Gourmet |
| Cellnex Telecom vs. Jones Lang LaSalle | Cellnex Telecom vs. Cushman Wakefield plc | Cellnex Telecom vs. Colliers International Group | Cellnex Telecom vs. CoStar Group |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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