Correlation Between ONEOK and Compagnie Plastic
Can any of the company-specific risk be diversified away by investing in both ONEOK and Compagnie Plastic 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 Compagnie Plastic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ONEOK Inc and Compagnie Plastic Omnium, you can compare the effects of market volatilities on ONEOK and Compagnie Plastic 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 Compagnie Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of ONEOK and Compagnie Plastic.
Diversification Opportunities for ONEOK and Compagnie Plastic
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ONEOK and Compagnie is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding ONEOK Inc and Compagnie Plastic Omnium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie Plastic Omnium 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 Compagnie Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie Plastic Omnium has no effect on the direction of ONEOK i.e., ONEOK and Compagnie Plastic go up and down completely randomly.
Pair Corralation between ONEOK and Compagnie Plastic
Assuming the 90 days trading horizon ONEOK Inc is expected to generate 0.66 times more return on investment than Compagnie Plastic. However, ONEOK Inc is 1.52 times less risky than Compagnie Plastic. It trades about -0.08 of its potential returns per unit of risk. Compagnie Plastic Omnium is currently generating about -0.06 per unit of risk. If you would invest 10,053 in ONEOK Inc on November 6, 2024 and sell it today you would lose (304.00) from holding ONEOK Inc or give up 3.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ONEOK Inc vs. Compagnie Plastic Omnium
Performance |
| Timeline |
| ONEOK Inc |
| Compagnie Plastic Omnium |
ONEOK and Compagnie Plastic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ONEOK and Compagnie Plastic
The main advantage of trading using opposite ONEOK and Compagnie Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ONEOK position performs unexpectedly, Compagnie Plastic 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 Compagnie Plastic will offset losses from the drop in Compagnie Plastic's long position.| ONEOK vs. CVS Health Corp | ONEOK vs. Planet Fitness Cl | ONEOK vs. Omega Healthcare Investors | ONEOK vs. Impax Asset Management |
| Compagnie Plastic vs. Cornish Metals | Compagnie Plastic vs. Tatton Asset Management | Compagnie Plastic vs. URU Metals | Compagnie Plastic vs. Fulcrum Metals PLC |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |