Correlation Between ONEOK and Finnair Oyj
Can any of the company-specific risk be diversified away by investing in both ONEOK and Finnair Oyj 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 Finnair Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ONEOK Inc and Finnair Oyj, you can compare the effects of market volatilities on ONEOK and Finnair Oyj 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 Finnair Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of ONEOK and Finnair Oyj.
Diversification Opportunities for ONEOK and Finnair Oyj
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ONEOK and Finnair is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding ONEOK Inc and Finnair Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finnair Oyj 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 Finnair Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finnair Oyj has no effect on the direction of ONEOK i.e., ONEOK and Finnair Oyj go up and down completely randomly.
Pair Corralation between ONEOK and Finnair Oyj
Assuming the 90 days trading horizon ONEOK Inc is expected to under-perform the Finnair Oyj. But the stock apears to be less risky and, when comparing its historical volatility, ONEOK Inc is 1.98 times less risky than Finnair Oyj. The stock trades about -0.14 of its potential returns per unit of risk. The Finnair Oyj is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 237.00 in Finnair Oyj on October 13, 2024 and sell it today you would lose (7.00) from holding Finnair Oyj or give up 2.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
ONEOK Inc vs. Finnair Oyj
Performance |
| Timeline |
| ONEOK Inc |
| Finnair Oyj |
ONEOK and Finnair Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ONEOK and Finnair Oyj
The main advantage of trading using opposite ONEOK and Finnair Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ONEOK position performs unexpectedly, Finnair Oyj 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 Finnair Oyj will offset losses from the drop in Finnair Oyj's long position.| ONEOK vs. Finnair Oyj | ONEOK vs. Ubisoft Entertainment | ONEOK vs. AcadeMedia AB | ONEOK vs. Qurate Retail Series |
| Finnair Oyj vs. Cizzle Biotechnology Holdings | Finnair Oyj vs. Taiwan Semiconductor Manufacturing | Finnair Oyj vs. Atalaya Mining | Finnair Oyj vs. Pfeiffer Vacuum Technology |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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