Correlation Between Cellnex Telecom and Toyota
Can any of the company-specific risk be diversified away by investing in both Cellnex Telecom and Toyota 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 Toyota 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 Toyota Motor Corp, you can compare the effects of market volatilities on Cellnex Telecom and Toyota 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 Toyota. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellnex Telecom and Toyota.
Diversification Opportunities for Cellnex Telecom and Toyota
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cellnex and Toyota is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Cellnex Telecom SA and Toyota Motor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Toyota Motor Corp 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 Toyota. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Toyota Motor Corp has no effect on the direction of Cellnex Telecom i.e., Cellnex Telecom and Toyota go up and down completely randomly.
Pair Corralation between Cellnex Telecom and Toyota
Assuming the 90 days trading horizon Cellnex Telecom SA is expected to under-perform the Toyota. But the stock apears to be less risky and, when comparing its historical volatility, Cellnex Telecom SA is 1.34 times less risky than Toyota. The stock trades about -0.23 of its potential returns per unit of risk. The Toyota Motor Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 291,761 in Toyota Motor Corp on September 5, 2025 and sell it today you would earn a total of 8,739 from holding Toyota Motor Corp or generate 3.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cellnex Telecom SA vs. Toyota Motor Corp
Performance |
| Timeline |
| Cellnex Telecom SA |
| Toyota Motor Corp |
Cellnex Telecom and Toyota Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cellnex Telecom and Toyota
The main advantage of trading using opposite Cellnex Telecom and Toyota positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellnex Telecom position performs unexpectedly, Toyota 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 Toyota will offset losses from the drop in Toyota's long position.| Cellnex Telecom vs. Sydbank | Cellnex Telecom vs. Software Circle plc | Cellnex Telecom vs. Sparebank 1 SR | Cellnex Telecom vs. Lloyds Banking Group |
| Toyota vs. Zegona Communications Plc | Toyota vs. Aeorema Communications Plc | Toyota vs. Cellnex Telecom SA | Toyota vs. Charter Communications Cl |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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