Correlation Between ONEOK and Check Point
Can any of the company-specific risk be diversified away by investing in both ONEOK and Check Point 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 Check Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ONEOK Inc and Check Point Software, you can compare the effects of market volatilities on ONEOK and Check Point 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 Check Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of ONEOK and Check Point.
Diversification Opportunities for ONEOK and Check Point
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between ONEOK and Check is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding ONEOK Inc and Check Point Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Check Point Software 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 Check Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Check Point Software has no effect on the direction of ONEOK i.e., ONEOK and Check Point go up and down completely randomly.
Pair Corralation between ONEOK and Check Point
Assuming the 90 days horizon ONEOK Inc is expected to under-perform the Check Point. In addition to that, ONEOK is 1.17 times more volatile than Check Point Software. It trades about -0.09 of its total potential returns per unit of risk. Check Point Software is currently generating about 0.27 per unit of volatility. If you would invest 16,505 in Check Point Software on September 13, 2024 and sell it today you would earn a total of 1,355 from holding Check Point Software or generate 8.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ONEOK Inc vs. Check Point Software
Performance |
| Timeline |
| ONEOK Inc |
| Check Point Software |
ONEOK and Check Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ONEOK and Check Point
The main advantage of trading using opposite ONEOK and Check Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ONEOK position performs unexpectedly, Check Point 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 Check Point will offset losses from the drop in Check Point's long position.| ONEOK vs. Casio Computer CoLtd | ONEOK vs. PKSHA TECHNOLOGY INC | ONEOK vs. Amkor Technology | ONEOK vs. Check Point Software |
| Check Point vs. Apple Inc | Check Point vs. Apple Inc | Check Point vs. Apple Inc | Check Point vs. Apple Inc |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |