Correlation Between Squirrel Media and Cellnex Telecom
Can any of the company-specific risk be diversified away by investing in both Squirrel Media 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 Squirrel Media and Cellnex Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Squirrel Media SA and Cellnex Telecom SA, you can compare the effects of market volatilities on Squirrel Media 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 Squirrel Media with a short position of Cellnex Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Squirrel Media and Cellnex Telecom.
Diversification Opportunities for Squirrel Media and Cellnex Telecom
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Squirrel and Cellnex is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Squirrel Media SA 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 Squirrel Media 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 Squirrel Media SA 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 Squirrel Media i.e., Squirrel Media and Cellnex Telecom go up and down completely randomly.
Pair Corralation between Squirrel Media and Cellnex Telecom
Assuming the 90 days trading horizon Squirrel Media SA is expected to under-perform the Cellnex Telecom. In addition to that, Squirrel Media is 1.71 times more volatile than Cellnex Telecom SA. It trades about -0.03 of its total potential returns per unit of risk. Cellnex Telecom SA is currently generating about -0.01 per unit of volatility. If you would invest 3,556 in Cellnex Telecom SA on October 23, 2024 and sell it today you would lose (358.00) from holding Cellnex Telecom SA or give up 10.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Squirrel Media SA vs. Cellnex Telecom SA
Performance |
| Timeline |
| Squirrel Media SA |
| Cellnex Telecom SA |
Squirrel Media and Cellnex Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Squirrel Media and Cellnex Telecom
The main advantage of trading using opposite Squirrel Media and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Squirrel Media 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.| Squirrel Media vs. All Iron Re | Squirrel Media vs. Technomeca Aerospace SA | Squirrel Media vs. Home Capital Rentals | Squirrel Media vs. Ebro Foods |
| Cellnex Telecom vs. Grifols SA | Cellnex Telecom vs. Aena SA | Cellnex Telecom vs. ACS Actividades de | Cellnex Telecom vs. Ferrovial |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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