Correlation Between Bloomsbury Publishing and ONEOK
Can any of the company-specific risk be diversified away by investing in both Bloomsbury Publishing 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 Bloomsbury Publishing and ONEOK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bloomsbury Publishing Plc and ONEOK Inc, you can compare the effects of market volatilities on Bloomsbury Publishing 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 Bloomsbury Publishing with a short position of ONEOK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloomsbury Publishing and ONEOK.
Diversification Opportunities for Bloomsbury Publishing and ONEOK
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bloomsbury and ONEOK is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bloomsbury Publishing Plc and ONEOK Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONEOK Inc and Bloomsbury Publishing 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 Bloomsbury Publishing Plc 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 Bloomsbury Publishing i.e., Bloomsbury Publishing and ONEOK go up and down completely randomly.
Pair Corralation between Bloomsbury Publishing and ONEOK
Assuming the 90 days trading horizon Bloomsbury Publishing Plc is expected to generate 1.28 times more return on investment than ONEOK. However, Bloomsbury Publishing is 1.28 times more volatile than ONEOK Inc. It trades about 0.0 of its potential returns per unit of risk. ONEOK Inc is currently generating about -0.08 per unit of risk. If you would invest 66,400 in Bloomsbury Publishing Plc on November 6, 2024 and sell it today you would lose (400.00) from holding Bloomsbury Publishing Plc or give up 0.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bloomsbury Publishing Plc vs. ONEOK Inc
Performance |
| Timeline |
| Bloomsbury Publishing Plc |
| ONEOK Inc |
Bloomsbury Publishing and ONEOK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloomsbury Publishing and ONEOK
The main advantage of trading using opposite Bloomsbury Publishing and ONEOK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloomsbury Publishing 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.| Bloomsbury Publishing vs. Broadcom | Bloomsbury Publishing vs. Norman Broadbent Plc | Bloomsbury Publishing vs. Gaztransport et Technigaz | Bloomsbury Publishing vs. Geely Automobile Holdings |
| ONEOK vs. CVS Health Corp | ONEOK vs. Planet Fitness Cl | ONEOK vs. Omega Healthcare Investors | ONEOK vs. Impax Asset Management |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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