Correlation Between Cboe UK and ONEOK
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By analyzing existing cross correlation between Cboe UK Consumer and ONEOK Inc, you can compare the effects of market volatilities on Cboe UK 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 Cboe UK with a short position of ONEOK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and ONEOK.
Diversification Opportunities for Cboe UK and ONEOK
Poor diversification
The 3 months correlation between Cboe and ONEOK is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and ONEOK Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONEOK Inc and Cboe UK 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 Cboe UK Consumer 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 Cboe UK i.e., Cboe UK and ONEOK go up and down completely randomly.
Pair Corralation between Cboe UK and ONEOK
Assuming the 90 days trading horizon Cboe UK is expected to generate 1.73 times less return on investment than ONEOK. But when comparing it to its historical volatility, Cboe UK Consumer is 1.62 times less risky than ONEOK. It trades about 0.12 of its potential returns per unit of risk. ONEOK Inc is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 6,188 in ONEOK Inc on October 11, 2024 and sell it today you would earn a total of 4,024 from holding ONEOK Inc or generate 65.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.97% |
| Values | Daily Returns |
Cboe UK Consumer vs. ONEOK Inc
Performance |
| Timeline |
Cboe UK and ONEOK Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
ONEOK Inc
Pair trading matchups for ONEOK
Pair Trading with Cboe UK and ONEOK
The main advantage of trading using opposite Cboe UK and ONEOK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK 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.| Cboe UK vs. Sligro Food Group | Cboe UK vs. LPKF Laser Electronics | Cboe UK vs. Zurich Insurance Group | Cboe UK vs. Scandinavian Tobacco Group |
| ONEOK vs. Roadside Real Estate | ONEOK vs. Gamma Communications PLC | ONEOK vs. Batm Advanced Communications | ONEOK vs. Martin Marietta Materials |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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