Correlation Between ONEOK and OTP Bank
Can any of the company-specific risk be diversified away by investing in both ONEOK and OTP Bank 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 OTP Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ONEOK Inc and OTP Bank Nyrt, you can compare the effects of market volatilities on ONEOK and OTP Bank 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 OTP Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of ONEOK and OTP Bank.
Diversification Opportunities for ONEOK and OTP Bank
Modest diversification
The 3 months correlation between ONEOK and OTP is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding ONEOK Inc and OTP Bank Nyrt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OTP Bank Nyrt 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 OTP Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OTP Bank Nyrt has no effect on the direction of ONEOK i.e., ONEOK and OTP Bank go up and down completely randomly.
Pair Corralation between ONEOK and OTP Bank
If you would invest 1,259,000 in OTP Bank Nyrt on October 25, 2024 and sell it today you would earn a total of 0.00 from holding OTP Bank Nyrt or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.56% |
| Values | Daily Returns |
ONEOK Inc vs. OTP Bank Nyrt
Performance |
| Timeline |
| ONEOK Inc |
| OTP Bank Nyrt |
ONEOK and OTP Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ONEOK and OTP Bank
The main advantage of trading using opposite ONEOK and OTP Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ONEOK position performs unexpectedly, OTP Bank 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 OTP Bank will offset losses from the drop in OTP Bank's long position.| ONEOK vs. Universal Music Group | ONEOK vs. Cornish Metals | ONEOK vs. Travel Leisure Co | ONEOK vs. Arrow Electronics |
| OTP Bank vs. Toyota Motor Corp | OTP Bank vs. SoftBank Group Corp | OTP Bank vs. ONEOK Inc | OTP Bank vs. Public Service Enterprise |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |