Correlation Between Phibro Animal and ONEOK
Can any of the company-specific risk be diversified away by investing in both Phibro Animal 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 Phibro Animal and ONEOK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phibro Animal Health and ONEOK Inc, you can compare the effects of market volatilities on Phibro Animal 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 Phibro Animal with a short position of ONEOK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phibro Animal and ONEOK.
Diversification Opportunities for Phibro Animal and ONEOK
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Phibro and ONEOK is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Phibro Animal Health and ONEOK Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONEOK Inc and Phibro Animal 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 Phibro Animal Health 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 Phibro Animal i.e., Phibro Animal and ONEOK go up and down completely randomly.
Pair Corralation between Phibro Animal and ONEOK
Assuming the 90 days horizon Phibro Animal Health is expected to generate 1.18 times more return on investment than ONEOK. However, Phibro Animal is 1.18 times more volatile than ONEOK Inc. It trades about 0.14 of its potential returns per unit of risk. ONEOK Inc is currently generating about -0.05 per unit of risk. If you would invest 1,960 in Phibro Animal Health on November 7, 2024 and sell it today you would earn a total of 120.00 from holding Phibro Animal Health or generate 6.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phibro Animal Health vs. ONEOK Inc
Performance |
| Timeline |
| Phibro Animal Health |
| ONEOK Inc |
Phibro Animal and ONEOK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phibro Animal and ONEOK
The main advantage of trading using opposite Phibro Animal and ONEOK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phibro Animal 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.| Phibro Animal vs. FAST RETAIL ADR | Phibro Animal vs. GRUPO CARSO A1 | Phibro Animal vs. CAREER EDUCATION | Phibro Animal vs. Xinhua Winshare Publishing |
| ONEOK vs. Osisko Metals | ONEOK vs. Aluminum of | ONEOK vs. DAIDO METAL TD | ONEOK vs. ADRIATIC METALS LS 013355 |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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