Correlation Between Cellnex Telecom and MT Bank

Can any of the company-specific risk be diversified away by investing in both Cellnex Telecom and MT Bank 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 Cellnex Telecom and MT Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cellnex Telecom SA and MT Bank Corp, you can compare the effects of market volatilities on Cellnex Telecom and MT Bank 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 Cellnex Telecom with a short position of MT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellnex Telecom and MT Bank.

Diversification Opportunities for Cellnex Telecom and MT Bank

-0.69

Correlation Coefficient

Cellnex Telecom  MT Bank

Excellent diversification

The 3 months correlation between Cellnex and 0JW2 is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Cellnex Telecom SA and MT Bank Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MT Bank Corp and Cellnex Telecom 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 Cellnex Telecom SA are associated (or correlated) with MT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MT Bank Corp has no effect on the direction of Cellnex Telecom i.e., Cellnex Telecom and MT Bank go up and down completely randomly.

Pair Corralation between Cellnex Telecom and MT Bank

Assuming the 90 days trading horizon Cellnex Telecom SA is expected to under-perform the MT Bank. But the stock apears to be less risky and, when comparing its historical volatility, Cellnex Telecom SA is 1.16 times less risky than MT Bank. The stock trades about -0.1 of its potential returns per unit of risk. The MT Bank Corp is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  16,020  in MT Bank Corp on April 20, 2025 and sell it today you would earn a total of  3,580  from holding MT Bank Corp or generate 22.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	91.94%
Values	Daily Returns

Cellnex Telecom SA  vs.  MT Bank Corp

Cellnex Telecom SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cellnex Telecom SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

MT Bank Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in MT Bank Corp are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, MT Bank unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cellnex Telecom and MT Bank

The main advantage of trading using opposite Cellnex Telecom and MT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellnex Telecom position performs unexpectedly, MT Bank 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 MT Bank will offset losses from the drop in MT Bank's long position.

The idea behind Cellnex Telecom SA and MT Bank Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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..