Correlation Between ONEOK and Ametek
Can any of the company-specific risk be diversified away by investing in both ONEOK and Ametek 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 Ametek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ONEOK Inc and Ametek Inc, you can compare the effects of market volatilities on ONEOK and Ametek 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 Ametek. Check out your portfolio center. Please also check ongoing floating volatility patterns of ONEOK and Ametek.
Diversification Opportunities for ONEOK and Ametek
Almost no diversification
The 3 months correlation between ONEOK and Ametek is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding ONEOK Inc and Ametek Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ametek Inc 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 Ametek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ametek Inc has no effect on the direction of ONEOK i.e., ONEOK and Ametek go up and down completely randomly.
Pair Corralation between ONEOK and Ametek
Assuming the 90 days trading horizon ONEOK Inc is expected to under-perform the Ametek. In addition to that, ONEOK is 2.77 times more volatile than Ametek Inc. It trades about -0.36 of its total potential returns per unit of risk. Ametek Inc is currently generating about -0.43 per unit of volatility. If you would invest 19,680 in Ametek Inc on September 23, 2024 and sell it today you would lose (1,293) from holding Ametek Inc or give up 6.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ONEOK Inc vs. Ametek Inc
Performance |
| Timeline |
| ONEOK Inc |
| Ametek Inc |
ONEOK and Ametek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ONEOK and Ametek
The main advantage of trading using opposite ONEOK and Ametek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ONEOK position performs unexpectedly, Ametek 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 Ametek will offset losses from the drop in Ametek's long position.| ONEOK vs. Fevertree Drinks Plc | ONEOK vs. Foresight Environmental Infrastructure | ONEOK vs. Fortune Brands Home | ONEOK vs. Silver Bullet Data |
| Ametek vs. Samsung Electronics Co | Ametek vs. Samsung Electronics Co | Ametek vs. Hyundai Motor | Ametek vs. Reliance Industries Ltd |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |