Correlation Between Okta and Cellnex Telecom
Can any of the company-specific risk be diversified away by investing in both Okta 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 Okta and Cellnex Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okta Inc and Cellnex Telecom SA, you can compare the effects of market volatilities on Okta 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 Okta with a short position of Cellnex Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and Cellnex Telecom.
Diversification Opportunities for Okta and Cellnex Telecom
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Okta and Cellnex is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Okta 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 Okta 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 Okta 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 Okta i.e., Okta and Cellnex Telecom go up and down completely randomly.
Pair Corralation between Okta and Cellnex Telecom
Given the investment horizon of 90 days Okta Inc is expected to generate 1.8 times more return on investment than Cellnex Telecom. However, Okta is 1.8 times more volatile than Cellnex Telecom SA. It trades about 0.03 of its potential returns per unit of risk. Cellnex Telecom SA is currently generating about 0.01 per unit of risk. If you would invest 6,442 in Okta Inc on August 30, 2024 and sell it today you would earn a total of 1,200 from holding Okta Inc or generate 18.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.21% |
| Values | Daily Returns |
Okta Inc vs. Cellnex Telecom SA
Performance |
| Timeline |
| Okta Inc |
| Cellnex Telecom SA |
Okta and Cellnex Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and Cellnex Telecom
The main advantage of trading using opposite Okta and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta 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.The idea behind Okta Inc and Cellnex Telecom SA 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.| Cellnex Telecom vs. ACS Actividades de | Cellnex Telecom vs. Ferrovial | Cellnex Telecom vs. Melia Hotels | Cellnex Telecom vs. Metrovacesa SA |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |