Correlation Between Cellnex Telecom and Spirent Communications
Can any of the company-specific risk be diversified away by investing in both Cellnex Telecom and Spirent Communications 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 Spirent Communications 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 Spirent Communications plc, you can compare the effects of market volatilities on Cellnex Telecom and Spirent Communications 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 Spirent Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellnex Telecom and Spirent Communications.
Diversification Opportunities for Cellnex Telecom and Spirent Communications
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cellnex and Spirent is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Cellnex Telecom SA and Spirent Communications plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spirent Communications 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 Spirent Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spirent Communications has no effect on the direction of Cellnex Telecom i.e., Cellnex Telecom and Spirent Communications go up and down completely randomly.
Pair Corralation between Cellnex Telecom and Spirent Communications
Assuming the 90 days trading horizon Cellnex Telecom SA is expected to under-perform the Spirent Communications. In addition to that, Cellnex Telecom is 3.38 times more volatile than Spirent Communications plc. It trades about -0.16 of its total potential returns per unit of risk. Spirent Communications plc is currently generating about 0.08 per unit of volatility. If you would invest 19,540 in Spirent Communications plc on July 20, 2025 and sell it today you would earn a total of 340.00 from holding Spirent Communications plc or generate 1.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Cellnex Telecom SA vs. Spirent Communications plc
Performance |
| Timeline |
| Cellnex Telecom SA |
| Spirent Communications |
Cellnex Telecom and Spirent Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cellnex Telecom and Spirent Communications
The main advantage of trading using opposite Cellnex Telecom and Spirent Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellnex Telecom position performs unexpectedly, Spirent Communications 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 Spirent Communications will offset losses from the drop in Spirent Communications' long position.| Cellnex Telecom vs. UNIQA Insurance Group | Cellnex Telecom vs. Federal Realty Investment | Cellnex Telecom vs. Mineral Financial Investments | Cellnex Telecom vs. BlackRock Frontiers Investment |
| Spirent Communications vs. Electronic Arts | Spirent Communications vs. Premier Foods PLC | Spirent Communications vs. Tyson Foods Cl | Spirent Communications vs. Public Storage |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |