Correlation Between Cellnex Telecom and Energa Innovacin

Can any of the company-specific risk be diversified away by investing in both Cellnex Telecom and Energa Innovacin 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 Energa Innovacin 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 Energa Innovacin y, you can compare the effects of market volatilities on Cellnex Telecom and Energa Innovacin 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 Energa Innovacin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellnex Telecom and Energa Innovacin.

Diversification Opportunities for Cellnex Telecom and Energa Innovacin

0.45

Correlation Coefficient

Cellnex Telecom  Energa Innovacin

Very weak diversification

The 3 months correlation between Cellnex and Energa is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Cellnex Telecom SA and Energa Innovacin y in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energa Innovacin y 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 Energa Innovacin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energa Innovacin y has no effect on the direction of Cellnex Telecom i.e., Cellnex Telecom and Energa Innovacin go up and down completely randomly.

Pair Corralation between Cellnex Telecom and Energa Innovacin

Assuming the 90 days trading horizon Cellnex Telecom SA is expected to generate 0.29 times more return on investment than Energa Innovacin. However, Cellnex Telecom SA is 3.44 times less risky than Energa Innovacin. It trades about -0.05 of its potential returns per unit of risk. Energa Innovacin y is currently generating about -0.21 per unit of risk. If you would invest  3,463  in Cellnex Telecom SA on April 25, 2025 and sell it today you would lose (144.00) from holding Cellnex Telecom SA or give up 4.16% of portfolio value over 90 days.

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

Cellnex Telecom SA  vs.  Energa Innovacin y

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.

Energa Innovacin y

Risk-Adjusted Performance

Very Weak

Over the last 90 days Energa Innovacin y has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Cellnex Telecom and Energa Innovacin

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

The idea behind Cellnex Telecom SA and Energa Innovacin y 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.