Correlation Between Alstria Office and Cellnex Telecom

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

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

Diversification Opportunities for Alstria Office and Cellnex Telecom

-0.39

Correlation Coefficient

Alstria Office  Cellnex Telecom

Very good diversification

The 3 months correlation between Alstria and Cellnex is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding alstria office REIT AG 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 Alstria Office 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 alstria office REIT AG 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 Alstria Office i.e., Alstria Office and Cellnex Telecom go up and down completely randomly.

Pair Corralation between Alstria Office and Cellnex Telecom

Assuming the 90 days trading horizon alstria office REIT AG is expected to generate 2.06 times more return on investment than Cellnex Telecom. However, Alstria Office is 2.06 times more volatile than Cellnex Telecom SA. It trades about 0.04 of its potential returns per unit of risk. Cellnex Telecom SA is currently generating about -0.02 per unit of risk. If you would invest  341.00  in alstria office REIT AG on October 11, 2024 and sell it today you would earn a total of  196.00  from holding alstria office REIT AG or generate 57.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

alstria office REIT AG  vs.  Cellnex Telecom SA

alstria office REIT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days alstria office REIT AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent essential indicators, Alstria Office is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Cellnex Telecom SA

Risk-Adjusted Performance

0 of 100

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 unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Alstria Office and Cellnex Telecom

The main advantage of trading using opposite Alstria Office and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alstria Office 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 alstria office REIT AG 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.