Correlation Between NYSE Composite and Cellnex Telecom
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Cellnex Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Cellnex Telecom SA, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Cellnex Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Cellnex Telecom.
Diversification Opportunities for NYSE Composite and Cellnex Telecom
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and Cellnex is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Cellnex Telecom go up and down completely randomly.
Pair Corralation between NYSE Composite and Cellnex Telecom
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.38 times more return on investment than Cellnex Telecom. However, NYSE Composite is 2.6 times less risky than Cellnex Telecom. It trades about 0.14 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 1,800,696 in NYSE Composite on September 1, 2024 and sell it today you would earn a total of 226,508 from holding NYSE Composite or generate 12.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
NYSE Composite vs. Cellnex Telecom SA
Performance |
| Timeline |
NYSE Composite and Cellnex Telecom Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Cellnex Telecom SA
Pair trading matchups for Cellnex Telecom
Pair Trading with NYSE Composite and Cellnex Telecom
The main advantage of trading using opposite NYSE Composite and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Acumen Pharmaceuticals | NYSE Composite vs. Mind Medicine | NYSE Composite vs. NL Industries | NYSE Composite vs. Ecovyst |
| Cellnex Telecom vs. CBRE Group Class | Cellnex Telecom vs. Cushman Wakefield plc | Cellnex Telecom vs. Newmark Group | Cellnex Telecom vs. Colliers International 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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