Correlation Between Cellnex Telecom and Ferrovial

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

Diversification Opportunities for Cellnex Telecom and Ferrovial

-0.58

Correlation Coefficient

Cellnex Telecom  Ferrovial

Excellent diversification

The 3 months correlation between Cellnex and Ferrovial is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Cellnex Telecom SA and Ferrovial SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ferrovial SA 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 Ferrovial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ferrovial SA has no effect on the direction of Cellnex Telecom i.e., Cellnex Telecom and Ferrovial go up and down completely randomly.

Pair Corralation between Cellnex Telecom and Ferrovial

Assuming the 90 days trading horizon Cellnex Telecom SA is expected to under-perform the Ferrovial. In addition to that, Cellnex Telecom is 1.36 times more volatile than Ferrovial SA. It trades about -0.05 of its total potential returns per unit of risk. Ferrovial SA is currently generating about 0.15 per unit of volatility. If you would invest  4,191  in Ferrovial SA on April 25, 2025 and sell it today you would earn a total of  345.00  from holding Ferrovial SA or generate 8.23% return on investment over 90 days.

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

Cellnex Telecom SA  vs.  Ferrovial SA

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.

Ferrovial SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ferrovial SA are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Ferrovial may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Cellnex Telecom and Ferrovial

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

The idea behind Cellnex Telecom SA and Ferrovial 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.

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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.