Correlation Between Exelon and Oklo

Can any of the company-specific risk be diversified away by investing in both Exelon and Oklo 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 Exelon and Oklo into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Exelon and Oklo Inc, you can compare the effects of market volatilities on Exelon and Oklo 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 Exelon with a short position of Oklo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exelon and Oklo.

Diversification Opportunities for Exelon and Oklo

0.22

Correlation Coefficient

Exelon  Oklo

Modest diversification

The 3 months correlation between Exelon and Oklo is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Exelon and Oklo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oklo Inc and Exelon 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 Exelon are associated (or correlated) with Oklo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oklo Inc has no effect on the direction of Exelon i.e., Exelon and Oklo go up and down completely randomly.

Pair Corralation between Exelon and Oklo

Considering the 90-day investment horizon Exelon is expected to generate 2.08 times less return on investment than Oklo. But when comparing it to its historical volatility, Exelon is 7.3 times less risky than Oklo. It trades about 0.22 of its potential returns per unit of risk. Oklo Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  2,404  in Oklo Inc on December 26, 2024 and sell it today you would earn a total of  232.00  from holding Oklo Inc or generate 9.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Exelon  vs.  Oklo Inc

Exelon

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Exelon are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting basic indicators, Exelon exhibited solid returns over the last few months and may actually be approaching a breakup point.

Oklo Inc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Oklo Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady essential indicators, Oklo displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Exelon and Oklo

The main advantage of trading using opposite Exelon and Oklo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exelon position performs unexpectedly, Oklo 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 Oklo will offset losses from the drop in Oklo's long position.

The idea behind Exelon and Oklo Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.