Correlation Between Triad Group and Cellnex Telecom
Can any of the company-specific risk be diversified away by investing in both Triad Group 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 Triad Group and Cellnex Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triad Group PLC and Cellnex Telecom SA, you can compare the effects of market volatilities on Triad Group 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 Triad Group with a short position of Cellnex Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triad Group and Cellnex Telecom.
Diversification Opportunities for Triad Group and Cellnex Telecom
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Triad and Cellnex is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Triad Group 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 Triad Group 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 Triad Group 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 Triad Group i.e., Triad Group and Cellnex Telecom go up and down completely randomly.
Pair Corralation between Triad Group and Cellnex Telecom
Assuming the 90 days trading horizon Triad Group PLC is expected to generate 1.48 times more return on investment than Cellnex Telecom. However, Triad Group is 1.48 times more volatile than Cellnex Telecom SA. It trades about 0.12 of its potential returns per unit of risk. Cellnex Telecom SA is currently generating about 0.0 per unit of risk. If you would invest 7,767 in Triad Group PLC on September 23, 2024 and sell it today you would earn a total of 20,233 from holding Triad Group PLC or generate 260.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Triad Group PLC vs. Cellnex Telecom SA
Performance |
| Timeline |
| Triad Group PLC |
| Cellnex Telecom SA |
Triad Group and Cellnex Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triad Group and Cellnex Telecom
The main advantage of trading using opposite Triad Group and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triad Group 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.| Triad Group vs. Rockfire Resources plc | Triad Group vs. Tlou Energy | Triad Group vs. Ikigai Ventures | Triad Group vs. Falcon Oil Gas |
| Cellnex Telecom vs. Herald Investment Trust | Cellnex Telecom vs. Oakley Capital Investments | Cellnex Telecom vs. Smithson Investment Trust | Cellnex Telecom vs. Tatton Asset Management |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |