Correlation Between Ke Holdings and Cellnex Telecom
Can any of the company-specific risk be diversified away by investing in both Ke Holdings 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 Ke Holdings and Cellnex Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ke Holdings and Cellnex Telecom SA, you can compare the effects of market volatilities on Ke Holdings 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 Ke Holdings with a short position of Cellnex Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ke Holdings and Cellnex Telecom.
Diversification Opportunities for Ke Holdings and Cellnex Telecom
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BEKE and Cellnex is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Ke Holdings 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 Ke Holdings 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 Ke Holdings 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 Ke Holdings i.e., Ke Holdings and Cellnex Telecom go up and down completely randomly.
Pair Corralation between Ke Holdings and Cellnex Telecom
Given the investment horizon of 90 days Ke Holdings is expected to generate 1.65 times more return on investment than Cellnex Telecom. However, Ke Holdings is 1.65 times more volatile than Cellnex Telecom SA. It trades about 0.09 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 1,931 in Ke Holdings on December 1, 2024 and sell it today you would earn a total of 296.00 from holding Ke Holdings or generate 15.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ke Holdings vs. Cellnex Telecom SA
Performance |
Timeline |
Ke Holdings |
Cellnex Telecom SA |
Ke Holdings and Cellnex Telecom Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ke Holdings and Cellnex Telecom
The main advantage of trading using opposite Ke Holdings and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ke Holdings 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.Ke Holdings vs. Marcus Millichap | Ke Holdings vs. Digitalbridge Group | Ke Holdings vs. Jones Lang LaSalle | Ke Holdings vs. CBRE Group Class |
Cellnex Telecom vs. Jones Lang LaSalle | Cellnex Telecom vs. Cushman Wakefield plc | Cellnex Telecom vs. Colliers International Group | Cellnex Telecom vs. CoStar Group |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data |