Correlation Between International Consolidated and Cellnex Telecom
Can any of the company-specific risk be diversified away by investing in both International Consolidated 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 International Consolidated and Cellnex Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Consolidated Airlines and Cellnex Telecom SA, you can compare the effects of market volatilities on International Consolidated 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 International Consolidated with a short position of Cellnex Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Consolidated and Cellnex Telecom.
Diversification Opportunities for International Consolidated and Cellnex Telecom
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between International and Cellnex is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding International Consolidated Air 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 International Consolidated 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 International Consolidated Airlines 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 International Consolidated i.e., International Consolidated and Cellnex Telecom go up and down completely randomly.
Pair Corralation between International Consolidated and Cellnex Telecom
Assuming the 90 days trading horizon International Consolidated Airlines is expected to generate 1.12 times more return on investment than Cellnex Telecom. However, International Consolidated is 1.12 times more volatile than Cellnex Telecom SA. It trades about 0.35 of its potential returns per unit of risk. Cellnex Telecom SA is currently generating about -0.13 per unit of risk. If you would invest 258.00 in International Consolidated Airlines on August 29, 2024 and sell it today you would earn a total of 44.00 from holding International Consolidated Airlines or generate 17.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Consolidated Air vs. Cellnex Telecom SA
Performance |
| Timeline |
| International Consolidated |
| Cellnex Telecom SA |
International Consolidated and Cellnex Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Consolidated and Cellnex Telecom
The main advantage of trading using opposite International Consolidated and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Consolidated 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.| International Consolidated vs. Cox ABG Group | International Consolidated vs. Tier1 Technology SA | International Consolidated vs. Ibervalles SOCIMI SA | International Consolidated vs. Miciso Real Estate |
| Cellnex Telecom vs. Mapfre | Cellnex Telecom vs. ENCE Energa y | Cellnex Telecom vs. Acerinox | Cellnex Telecom vs. Enags 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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