Correlation Between Airbus Group and Cellnex Telecom
Can any of the company-specific risk be diversified away by investing in both Airbus 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 Airbus 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 Airbus Group SE and Cellnex Telecom SA, you can compare the effects of market volatilities on Airbus 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 Airbus Group with a short position of Cellnex Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airbus Group and Cellnex Telecom.
Diversification Opportunities for Airbus Group and Cellnex Telecom
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Airbus and Cellnex is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Airbus Group 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 Airbus 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 Airbus Group 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 Airbus Group i.e., Airbus Group and Cellnex Telecom go up and down completely randomly.
Pair Corralation between Airbus Group and Cellnex Telecom
Assuming the 90 days trading horizon Airbus Group SE is expected to generate 1.03 times more return on investment than Cellnex Telecom. However, Airbus Group is 1.03 times more volatile than Cellnex Telecom SA. It trades about 0.19 of its potential returns per unit of risk. Cellnex Telecom SA is currently generating about -0.08 per unit of risk. If you would invest 13,080 in Airbus Group SE on September 12, 2024 and sell it today you would earn a total of 2,574 from holding Airbus Group SE or generate 19.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Airbus Group SE vs. Cellnex Telecom SA
Performance |
Timeline |
Airbus Group SE |
Cellnex Telecom SA |
Airbus Group and Cellnex Telecom Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Airbus Group and Cellnex Telecom
The main advantage of trading using opposite Airbus Group and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airbus 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.Airbus Group vs. Squirrel Media SA | Airbus Group vs. Plasticos Compuestos SA | Airbus Group vs. Tier1 Technology SA | Airbus Group vs. Borges Agricultural Industrial |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |