Correlation Between ONEOK and Atresmedia
Can any of the company-specific risk be diversified away by investing in both ONEOK and Atresmedia 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 Atresmedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ONEOK Inc and Atresmedia, you can compare the effects of market volatilities on ONEOK and Atresmedia 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 Atresmedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of ONEOK and Atresmedia.
Diversification Opportunities for ONEOK and Atresmedia
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ONEOK and Atresmedia is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding ONEOK Inc and Atresmedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atresmedia 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 Atresmedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atresmedia has no effect on the direction of ONEOK i.e., ONEOK and Atresmedia go up and down completely randomly.
Pair Corralation between ONEOK and Atresmedia
Assuming the 90 days trading horizon ONEOK Inc is expected to under-perform the Atresmedia. In addition to that, ONEOK is 1.55 times more volatile than Atresmedia. It trades about -0.23 of its total potential returns per unit of risk. Atresmedia is currently generating about 0.32 per unit of volatility. If you would invest 460.00 in Atresmedia on December 11, 2024 and sell it today you would earn a total of 37.00 from holding Atresmedia or generate 8.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ONEOK Inc vs. Atresmedia
Performance |
| Timeline |
| ONEOK Inc |
| Atresmedia |
ONEOK and Atresmedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ONEOK and Atresmedia
The main advantage of trading using opposite ONEOK and Atresmedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ONEOK position performs unexpectedly, Atresmedia 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 Atresmedia will offset losses from the drop in Atresmedia's long position.| ONEOK vs. Lindsell Train Investment | ONEOK vs. Broadcom | ONEOK vs. EJF Investments | ONEOK vs. CleanTech Lithium plc |
| Atresmedia vs. Tatton Asset Management | Atresmedia vs. Bellevue Healthcare Trust | Atresmedia vs. Jupiter Fund Management | Atresmedia vs. Scandinavian Tobacco 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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