Correlation Between Aena SA and Cellnex Telecom

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

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

Diversification Opportunities for Aena SA and Cellnex Telecom

-0.41

Correlation Coefficient

Aena SA  Cellnex Telecom

Very good diversification

The 3 months correlation between Aena and Cellnex is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Aena SA 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 Aena SA 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 Aena SA 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 Aena SA i.e., Aena SA and Cellnex Telecom go up and down completely randomly.

Pair Corralation between Aena SA and Cellnex Telecom

Assuming the 90 days trading horizon Aena SA is expected to generate 1.0 times more return on investment than Cellnex Telecom. However, Aena SA is 1.0 times less risky than Cellnex Telecom. It trades about 0.16 of its potential returns per unit of risk. Cellnex Telecom SA is currently generating about -0.07 per unit of risk. If you would invest  2,116  in Aena SA on April 23, 2025 and sell it today you would earn a total of  245.00  from holding Aena SA or generate 11.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Aena SA  vs.  Cellnex Telecom SA

Aena SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Aena SA are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Aena SA may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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 rather sound fundamental indicators, Cellnex Telecom is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Aena SA and Cellnex Telecom

The main advantage of trading using opposite Aena SA and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aena SA 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.

The idea behind Aena SA and Cellnex Telecom SA 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.