Correlation Between CAL-MAINE FOODS and Cellnex Telecom

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

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

Diversification Opportunities for CAL-MAINE FOODS and Cellnex Telecom

-0.36

Correlation Coefficient

CAL-MAINE FOODS  Cellnex Telecom

Very good diversification

The 3 months correlation between CAL-MAINE and Cellnex is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding CAL MAINE FOODS 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 CAL-MAINE FOODS 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 CAL MAINE FOODS 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 CAL-MAINE FOODS i.e., CAL-MAINE FOODS and Cellnex Telecom go up and down completely randomly.

Pair Corralation between CAL-MAINE FOODS and Cellnex Telecom

Assuming the 90 days trading horizon CAL MAINE FOODS is expected to under-perform the Cellnex Telecom. In addition to that, CAL-MAINE FOODS is 1.66 times more volatile than Cellnex Telecom SA. It trades about -0.03 of its total potential returns per unit of risk. Cellnex Telecom SA is currently generating about 0.08 per unit of volatility. If you would invest  3,039  in Cellnex Telecom SA on December 30, 2024 and sell it today you would earn a total of  308.00  from holding Cellnex Telecom SA or generate 10.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

CAL MAINE FOODS  vs.  Cellnex Telecom SA

CAL MAINE FOODS

Risk-Adjusted Performance

Very Weak

Over the last 90 days CAL MAINE FOODS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm 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 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Cellnex Telecom may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with CAL-MAINE FOODS and Cellnex Telecom

The main advantage of trading using opposite CAL-MAINE FOODS and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAL-MAINE FOODS 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 CAL MAINE FOODS 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.