Correlation Between Cellnex Telecom and Abrdn Property

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

Diversification Opportunities for Cellnex Telecom and Abrdn Property

0.0

Correlation Coefficient

Cellnex Telecom  Abrdn Property

Pay attention - limited upside

The 3 months correlation between Cellnex and Abrdn is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cellnex Telecom SA and abrdn Property Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on abrdn Property Income 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 Abrdn Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of abrdn Property Income has no effect on the direction of Cellnex Telecom i.e., Cellnex Telecom and Abrdn Property go up and down completely randomly.

Pair Corralation between Cellnex Telecom and Abrdn Property

Assuming the 90 days trading horizon Cellnex Telecom SA is expected to generate 0.65 times more return on investment than Abrdn Property. However, Cellnex Telecom SA is 1.55 times less risky than Abrdn Property. It trades about 0.07 of its potential returns per unit of risk. abrdn Property Income is currently generating about -0.08 per unit of risk. If you would invest  3,059  in Cellnex Telecom SA on December 24, 2024 and sell it today you would earn a total of  213.00  from holding Cellnex Telecom SA or generate 6.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Cellnex Telecom SA  vs.  abrdn Property Income

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 comparatively uncertain basic indicators, Cellnex Telecom may actually be approaching a critical reversion point that can send shares even higher in April 2025.

abrdn Property Income

Risk-Adjusted Performance

Very Weak

Over the last 90 days abrdn Property Income 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 technical and fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Cellnex Telecom and Abrdn Property

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

The idea behind Cellnex Telecom SA and abrdn Property Income 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.