Correlation Between Vonovia SE and Cellnex Telecom
Can any of the company-specific risk be diversified away by investing in both Vonovia SE 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 Vonovia SE and Cellnex Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vonovia SE and Cellnex Telecom SA, you can compare the effects of market volatilities on Vonovia SE 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 Vonovia SE with a short position of Cellnex Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vonovia SE and Cellnex Telecom.
Diversification Opportunities for Vonovia SE and Cellnex Telecom
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Vonovia and Cellnex is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Vonovia SE 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 Vonovia SE 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 Vonovia SE 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 Vonovia SE i.e., Vonovia SE and Cellnex Telecom go up and down completely randomly.
Pair Corralation between Vonovia SE and Cellnex Telecom
Assuming the 90 days horizon Vonovia SE is expected to generate 1.6 times more return on investment than Cellnex Telecom. However, Vonovia SE is 1.6 times more volatile than Cellnex Telecom SA. It trades about 0.04 of its potential returns per unit of risk. Cellnex Telecom SA is currently generating about 0.01 per unit of risk. If you would invest 2,259 in Vonovia SE on August 29, 2024 and sell it today you would earn a total of 1,016 from holding Vonovia SE or generate 44.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 96.0% |
| Values | Daily Returns |
Vonovia SE vs. Cellnex Telecom SA
Performance |
| Timeline |
| Vonovia SE |
| Cellnex Telecom SA |
Vonovia SE and Cellnex Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vonovia SE and Cellnex Telecom
The main advantage of trading using opposite Vonovia SE and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vonovia SE 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.| Vonovia SE vs. Vonovia SE ADR | Vonovia SE vs. CBRE Group Class | Vonovia SE vs. Opendoor Technologies | Vonovia SE vs. Jones Lang LaSalle |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |