Correlation Between Cellnex Telecom and Merlin Properties

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

Diversification Opportunities for Cellnex Telecom and Merlin Properties

0.0

Correlation Coefficient

Cellnex Telecom  Merlin Properties

Pay attention - limited upside

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

Pair Corralation between Cellnex Telecom and Merlin Properties

If you would invest (100.00) in Merlin Properties SOCIMI on May 7, 2025 and sell it today you would earn a total of  100.00  from holding Merlin Properties SOCIMI or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Cellnex Telecom SA  vs.  Merlin Properties SOCIMI

Cellnex Telecom SA

Risk-Adjusted Performance

Weakest

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 latest weak performance, the Stock's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Merlin Properties SOCIMI

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Merlin Properties SOCIMI are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak essential indicators, Merlin Properties exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cellnex Telecom and Merlin Properties

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

The idea behind Cellnex Telecom SA and Merlin Properties SOCIMI 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.