Correlation Between Cellnex Telecom and Nyesa Valores

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

Diversification Opportunities for Cellnex Telecom and Nyesa Valores

-0.43

Correlation Coefficient

Cellnex Telecom  Nyesa Valores

Very good diversification

The 3 months correlation between Cellnex and Nyesa is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Cellnex Telecom SA and Nyesa Valores Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nyesa Valores 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 Nyesa Valores. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nyesa Valores Corp has no effect on the direction of Cellnex Telecom i.e., Cellnex Telecom and Nyesa Valores go up and down completely randomly.

Pair Corralation between Cellnex Telecom and Nyesa Valores

Assuming the 90 days trading horizon Cellnex Telecom SA is expected to under-perform the Nyesa Valores. But the stock apears to be less risky and, when comparing its historical volatility, Cellnex Telecom SA is 11.74 times less risky than Nyesa Valores. The stock trades about -0.05 of its potential returns per unit of risk. The Nyesa Valores Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  0.58  in Nyesa Valores Corp on April 23, 2025 and sell it today you would earn a total of  0.24  from holding Nyesa Valores Corp or generate 41.38% 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.  Nyesa Valores 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 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.

Nyesa Valores Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Nyesa Valores Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Nyesa Valores exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cellnex Telecom and Nyesa Valores

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

The idea behind Cellnex Telecom SA and Nyesa Valores 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.

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 Equity Valuation module to check real value of public entities based on technical and fundamental data.