Correlation Between ONEOK and Cellnex Telecom
Can any of the company-specific risk be diversified away by investing in both ONEOK 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 ONEOK and Cellnex Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ONEOK Inc and Cellnex Telecom SA, you can compare the effects of market volatilities on ONEOK 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 ONEOK with a short position of Cellnex Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of ONEOK and Cellnex Telecom.
Diversification Opportunities for ONEOK and Cellnex Telecom
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ONEOK and Cellnex is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding ONEOK Inc 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 ONEOK 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 ONEOK Inc 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 ONEOK i.e., ONEOK and Cellnex Telecom go up and down completely randomly.
Pair Corralation between ONEOK and Cellnex Telecom
Assuming the 90 days trading horizon ONEOK Inc is expected to under-perform the Cellnex Telecom. But the stock apears to be less risky and, when comparing its historical volatility, ONEOK Inc is 1.23 times less risky than Cellnex Telecom. The stock trades about -0.1 of its potential returns per unit of risk. The Cellnex Telecom SA is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,095 in Cellnex Telecom SA on November 4, 2024 and sell it today you would earn a total of 154.00 from holding Cellnex Telecom SA or generate 4.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ONEOK Inc vs. Cellnex Telecom SA
Performance |
| Timeline |
| ONEOK Inc |
| Cellnex Telecom SA |
ONEOK and Cellnex Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ONEOK and Cellnex Telecom
The main advantage of trading using opposite ONEOK and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ONEOK 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.| ONEOK vs. Universal Display Corp | ONEOK vs. Playtech Plc | ONEOK vs. Cairn Homes PLC | ONEOK vs. Cairo Communication SpA |
| Cellnex Telecom vs. Melia Hotels | Cellnex Telecom vs. PPHE Hotel Group | Cellnex Telecom vs. InterContinental Hotels Group | Cellnex Telecom vs. Hochschild Mining plc |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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