Correlation Between Vantage Towers and Cellnex Telecom
Can any of the company-specific risk be diversified away by investing in both Vantage Towers 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 Vantage Towers and Cellnex Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vantage Towers AG and Cellnex Telecom SA, you can compare the effects of market volatilities on Vantage Towers 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 Vantage Towers with a short position of Cellnex Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vantage Towers and Cellnex Telecom.
Diversification Opportunities for Vantage Towers and Cellnex Telecom
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vantage and Cellnex is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Vantage Towers AG 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 Vantage Towers 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 Vantage Towers AG 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 Vantage Towers i.e., Vantage Towers and Cellnex Telecom go up and down completely randomly.
Pair Corralation between Vantage Towers and Cellnex Telecom
Assuming the 90 days horizon Vantage Towers AG is expected to generate 0.49 times more return on investment than Cellnex Telecom. However, Vantage Towers AG is 2.04 times less risky than Cellnex Telecom. It trades about 0.21 of its potential returns per unit of risk. Cellnex Telecom SA is currently generating about -0.06 per unit of risk. If you would invest 1,954 in Vantage Towers AG on September 19, 2024 and sell it today you would earn a total of 82.00 from holding Vantage Towers AG or generate 4.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Vantage Towers AG vs. Cellnex Telecom SA
Performance |
| Timeline |
| Vantage Towers AG |
| Cellnex Telecom SA |
Vantage Towers and Cellnex Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vantage Towers and Cellnex Telecom
The main advantage of trading using opposite Vantage Towers and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vantage Towers 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.| Vantage Towers vs. Pinterest | Vantage Towers vs. Ziff Davis | Vantage Towers vs. NuRAN Wireless | Vantage Towers vs. Zhihu Inc ADR |
| Cellnex Telecom vs. Jones Lang LaSalle | Cellnex Telecom vs. Cushman Wakefield plc | Cellnex Telecom vs. Colliers International Group | Cellnex Telecom vs. CoStar 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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