Correlation Between Uniper SE and ONEOK
Can any of the company-specific risk be diversified away by investing in both Uniper SE and ONEOK 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 Uniper SE and ONEOK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uniper SE and ONEOK Inc, you can compare the effects of market volatilities on Uniper SE and ONEOK 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 Uniper SE with a short position of ONEOK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uniper SE and ONEOK.
Diversification Opportunities for Uniper SE and ONEOK
Very good diversification
The 3 months correlation between Uniper and ONEOK is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Uniper SE and ONEOK Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONEOK Inc and Uniper SE 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 Uniper SE are associated (or correlated) with ONEOK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ONEOK Inc has no effect on the direction of Uniper SE i.e., Uniper SE and ONEOK go up and down completely randomly.
Pair Corralation between Uniper SE and ONEOK
Assuming the 90 days trading horizon Uniper SE is expected to under-perform the ONEOK. In addition to that, Uniper SE is 2.2 times more volatile than ONEOK Inc. It trades about -0.06 of its total potential returns per unit of risk. ONEOK Inc is currently generating about 0.12 per unit of volatility. If you would invest 5,480 in ONEOK Inc on October 12, 2024 and sell it today you would earn a total of 4,703 from holding ONEOK Inc or generate 85.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.99% |
| Values | Daily Returns |
Uniper SE vs. ONEOK Inc
Performance |
| Timeline |
| Uniper SE |
| ONEOK Inc |
Uniper SE and ONEOK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uniper SE and ONEOK
The main advantage of trading using opposite Uniper SE and ONEOK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uniper SE position performs unexpectedly, ONEOK 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 ONEOK will offset losses from the drop in ONEOK's long position.| Uniper SE vs. Accesso Technology Group | Uniper SE vs. Invesco Physical Silver | Uniper SE vs. Sabien Technology Group | Uniper SE vs. Coeur Mining |
| ONEOK vs. Anglo Asian Mining | ONEOK vs. Teradata Corp | ONEOK vs. iShares Physical Silver | ONEOK vs. Lundin Mining Corp |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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