Correlation Between Swisscom and Cellcom Israel

Can any of the company-specific risk be diversified away by investing in both Swisscom and Cellcom Israel 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 Swisscom and Cellcom Israel into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Swisscom AG and Cellcom Israel, you can compare the effects of market volatilities on Swisscom and Cellcom Israel 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 Swisscom with a short position of Cellcom Israel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swisscom and Cellcom Israel.

Diversification Opportunities for Swisscom and Cellcom Israel

0.0

Correlation Coefficient

Swisscom  Cellcom Israel

Pay attention - limited upside

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

Pair Corralation between Swisscom and Cellcom Israel

If you would invest  64,177  in Swisscom AG on May 17, 2025 and sell it today you would earn a total of  7,823  from holding Swisscom AG or generate 12.19% return on investment over 90 days.

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

Swisscom AG  vs.  Cellcom Israel

Swisscom AG

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Swisscom AG are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, Swisscom may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Cellcom Israel

Risk-Adjusted Performance

Weakest

Over the last 90 days Cellcom Israel has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking indicators, Cellcom Israel is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Swisscom and Cellcom Israel

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

The idea behind Swisscom AG and Cellcom Israel 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.