Correlation Between ONEOK and Cable One
Can any of the company-specific risk be diversified away by investing in both ONEOK and Cable One 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 Cable One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ONEOK Inc and Cable One, you can compare the effects of market volatilities on ONEOK and Cable One 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 Cable One. Check out your portfolio center. Please also check ongoing floating volatility patterns of ONEOK and Cable One.
Diversification Opportunities for ONEOK and Cable One
Pay attention - limited upside
The 3 months correlation between ONEOK and Cable is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ONEOK Inc and Cable One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cable One 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 Cable One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cable One has no effect on the direction of ONEOK i.e., ONEOK and Cable One go up and down completely randomly.
Pair Corralation between ONEOK and Cable One
If you would invest 0.00 in ONEOK Inc on August 29, 2024 and sell it today you would earn a total of 0.00 from holding ONEOK Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.55% |
| Values | Daily Returns |
ONEOK Inc vs. Cable One
Performance |
| Timeline |
| ONEOK Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Cable One |
ONEOK and Cable One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ONEOK and Cable One
The main advantage of trading using opposite ONEOK and Cable One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ONEOK position performs unexpectedly, Cable One 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 Cable One will offset losses from the drop in Cable One's long position.| ONEOK vs. Bemobi Mobile Tech | ONEOK vs. HDFC Bank Limited | ONEOK vs. Metalurgica Gerdau SA | ONEOK vs. Mitsubishi UFJ Financial |
| Cable One vs. Unity Software | Cable One vs. Verizon Communications | Cable One vs. Paycom Software | Cable One vs. Extra Space Storage |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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