Correlation Between Jones Lang and Cellnex Telecom
Can any of the company-specific risk be diversified away by investing in both Jones Lang 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 Jones Lang and Cellnex Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jones Lang LaSalle and Cellnex Telecom SA, you can compare the effects of market volatilities on Jones Lang 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 Jones Lang with a short position of Cellnex Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jones Lang and Cellnex Telecom.
Diversification Opportunities for Jones Lang and Cellnex Telecom
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jones and Cellnex is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Jones Lang LaSalle 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 Jones Lang 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 Jones Lang LaSalle 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 Jones Lang i.e., Jones Lang and Cellnex Telecom go up and down completely randomly.
Pair Corralation between Jones Lang and Cellnex Telecom
Considering the 90-day investment horizon Jones Lang LaSalle is expected to generate 1.21 times more return on investment than Cellnex Telecom. However, Jones Lang is 1.21 times more volatile than Cellnex Telecom SA. It trades about 0.15 of its potential returns per unit of risk. Cellnex Telecom SA is currently generating about -0.02 per unit of risk. If you would invest 19,900 in Jones Lang LaSalle on September 1, 2024 and sell it today you would earn a total of 8,160 from holding Jones Lang LaSalle or generate 41.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Jones Lang LaSalle vs. Cellnex Telecom SA
Performance |
| Timeline |
| Jones Lang LaSalle |
| Cellnex Telecom SA |
Jones Lang and Cellnex Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jones Lang and Cellnex Telecom
The main advantage of trading using opposite Jones Lang and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jones Lang 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.| Jones Lang vs. Cushman Wakefield plc | Jones Lang vs. Colliers International Group | Jones Lang vs. CoStar Group | Jones Lang vs. Newmark Group |
| Cellnex Telecom vs. IRSA Inversiones Y | Cellnex Telecom vs. Anywhere Real Estate | Cellnex Telecom vs. Newmark Group | Cellnex Telecom vs. New York City |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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