Correlation Between Nueva Expresin and Cellnex Telecom

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

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

Diversification Opportunities for Nueva Expresin and Cellnex Telecom

0.0

Correlation Coefficient

Nueva Expresin  Cellnex Telecom

Pay attention - limited upside

The 3 months correlation between Nueva and Cellnex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nueva Expresin Textil 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 Nueva Expresin 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 Nueva Expresin Textil 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 Nueva Expresin i.e., Nueva Expresin and Cellnex Telecom go up and down completely randomly.

Pair Corralation between Nueva Expresin and Cellnex Telecom

If you would invest  3,238  in Cellnex Telecom SA on February 3, 2025 and sell it today you would earn a total of  288.00  from holding Cellnex Telecom SA or generate 8.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Nueva Expresin Textil  vs.  Cellnex Telecom SA

Nueva Expresin Textil

Risk-Adjusted Performance

Good

Over the last 90 days Nueva Expresin Textil has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Nueva Expresin is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Cellnex Telecom SA

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Cellnex Telecom SA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, Cellnex Telecom may actually be approaching a critical reversion point that can send shares even higher in June 2025.

Pair Trading with Nueva Expresin and Cellnex Telecom

The main advantage of trading using opposite Nueva Expresin and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nueva Expresin 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 Nueva Expresin Textil 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..