Correlation Between ONEOK and SECOM CO
Can any of the company-specific risk be diversified away by investing in both ONEOK and SECOM CO 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 SECOM CO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ONEOK Inc and SECOM LTD, you can compare the effects of market volatilities on ONEOK and SECOM CO 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 SECOM CO. Check out your portfolio center. Please also check ongoing floating volatility patterns of ONEOK and SECOM CO.
Diversification Opportunities for ONEOK and SECOM CO
Good diversification
The 3 months correlation between ONEOK and SECOM is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding ONEOK Inc and SECOM LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SECOM LTD 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 SECOM CO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SECOM LTD has no effect on the direction of ONEOK i.e., ONEOK and SECOM CO go up and down completely randomly.
Pair Corralation between ONEOK and SECOM CO
Assuming the 90 days horizon ONEOK Inc is expected to generate 1.19 times more return on investment than SECOM CO. However, ONEOK is 1.19 times more volatile than SECOM LTD. It trades about 0.13 of its potential returns per unit of risk. SECOM LTD is currently generating about -0.14 per unit of risk. If you would invest 9,852 in ONEOK Inc on October 17, 2024 and sell it today you would earn a total of 348.00 from holding ONEOK Inc or generate 3.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
ONEOK Inc vs. SECOM LTD
Performance |
| Timeline |
| ONEOK Inc |
| SECOM LTD |
ONEOK and SECOM CO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ONEOK and SECOM CO
The main advantage of trading using opposite ONEOK and SECOM CO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ONEOK position performs unexpectedly, SECOM CO 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 SECOM CO will offset losses from the drop in SECOM CO's long position.| ONEOK vs. KOBE STEEL LTD | ONEOK vs. Mount Gibson Iron | ONEOK vs. Xiwang Special Steel | ONEOK vs. STEEL DYNAMICS |
| SECOM CO vs. MAGNUM MINING EXP | SECOM CO vs. Perseus Mining Limited | SECOM CO vs. CANON MARKETING JP | SECOM CO vs. BW OFFSHORE LTD |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Global Correlations Find global opportunities by holding instruments from different markets |