Correlation Between PureTech Health and Cellnex Telecom
Can any of the company-specific risk be diversified away by investing in both PureTech Health 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 PureTech Health and Cellnex Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PureTech Health plc and Cellnex Telecom SA, you can compare the effects of market volatilities on PureTech Health 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 PureTech Health with a short position of Cellnex Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of PureTech Health and Cellnex Telecom.
Diversification Opportunities for PureTech Health and Cellnex Telecom
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PureTech and Cellnex is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding PureTech Health plc 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 PureTech Health 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 PureTech Health plc 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 PureTech Health i.e., PureTech Health and Cellnex Telecom go up and down completely randomly.
Pair Corralation between PureTech Health and Cellnex Telecom
Assuming the 90 days trading horizon PureTech Health plc is expected to under-perform the Cellnex Telecom. In addition to that, PureTech Health is 1.52 times more volatile than Cellnex Telecom SA. It trades about -0.02 of its total potential returns per unit of risk. Cellnex Telecom SA is currently generating about 0.02 per unit of volatility. If you would invest 3,090 in Cellnex Telecom SA on September 14, 2024 and sell it today you would earn a total of 221.00 from holding Cellnex Telecom SA or generate 7.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
PureTech Health plc vs. Cellnex Telecom SA
Performance |
| Timeline |
| PureTech Health plc |
| Cellnex Telecom SA |
PureTech Health and Cellnex Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PureTech Health and Cellnex Telecom
The main advantage of trading using opposite PureTech Health and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PureTech Health 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.| PureTech Health vs. Hyundai Motor | PureTech Health vs. Toyota Motor Corp | PureTech Health vs. SoftBank Group Corp | PureTech Health vs. Halyk Bank of |
| Cellnex Telecom vs. PureTech Health plc | Cellnex Telecom vs. Beazer Homes USA | Cellnex Telecom vs. Tatton Asset Management | Cellnex Telecom vs. Ecofin Global Utilities |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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