Correlation Between Cellnex Telecom and Petroleo Brasileiro
Can any of the company-specific risk be diversified away by investing in both Cellnex Telecom and Petroleo Brasileiro 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 Petroleo Brasileiro 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 Petroleo Brasileiro SA, you can compare the effects of market volatilities on Cellnex Telecom and Petroleo Brasileiro 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 Petroleo Brasileiro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellnex Telecom and Petroleo Brasileiro.
Diversification Opportunities for Cellnex Telecom and Petroleo Brasileiro
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cellnex and Petroleo is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Cellnex Telecom SA and Petroleo Brasileiro SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petroleo Brasileiro 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 Petroleo Brasileiro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petroleo Brasileiro has no effect on the direction of Cellnex Telecom i.e., Cellnex Telecom and Petroleo Brasileiro go up and down completely randomly.
Pair Corralation between Cellnex Telecom and Petroleo Brasileiro
Assuming the 90 days trading horizon Cellnex Telecom SA is expected to under-perform the Petroleo Brasileiro. But the stock apears to be less risky and, when comparing its historical volatility, Cellnex Telecom SA is 1.43 times less risky than Petroleo Brasileiro. The stock trades about -0.05 of its potential returns per unit of risk. The Petroleo Brasileiro SA is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 471.00 in Petroleo Brasileiro SA on April 24, 2025 and sell it today you would earn a total of 26.00 from holding Petroleo Brasileiro SA or generate 5.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 98.44% |
Values | Daily Returns |
Cellnex Telecom SA vs. Petroleo Brasileiro SA
Performance |
Timeline |
Cellnex Telecom SA |
Petroleo Brasileiro |
Cellnex Telecom and Petroleo Brasileiro Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cellnex Telecom and Petroleo Brasileiro
The main advantage of trading using opposite Cellnex Telecom and Petroleo Brasileiro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellnex Telecom position performs unexpectedly, Petroleo Brasileiro 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 Petroleo Brasileiro will offset losses from the drop in Petroleo Brasileiro's long position.Cellnex Telecom vs. Grifols SA | Cellnex Telecom vs. Aena SA | Cellnex Telecom vs. ACS Actividades de | Cellnex Telecom vs. Ferrovial SA |
Petroleo Brasileiro vs. Neinor Homes SLU | Petroleo Brasileiro vs. Plasticos Compuestos SA | Petroleo Brasileiro vs. Ebro Foods | Petroleo Brasileiro vs. All Iron Re |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |