Correlation Between Globex Mining and ONEOK
Can any of the company-specific risk be diversified away by investing in both Globex Mining 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 Globex Mining and ONEOK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globex Mining Enterprises and ONEOK Inc, you can compare the effects of market volatilities on Globex Mining 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 Globex Mining with a short position of ONEOK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globex Mining and ONEOK.
Diversification Opportunities for Globex Mining and ONEOK
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Globex and ONEOK is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Globex Mining Enterprises and ONEOK Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONEOK Inc and Globex Mining 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 Globex Mining Enterprises 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 Globex Mining i.e., Globex Mining and ONEOK go up and down completely randomly.
Pair Corralation between Globex Mining and ONEOK
Assuming the 90 days trading horizon Globex Mining Enterprises is expected to generate 1.21 times more return on investment than ONEOK. However, Globex Mining is 1.21 times more volatile than ONEOK Inc. It trades about 0.21 of its potential returns per unit of risk. ONEOK Inc is currently generating about -0.01 per unit of risk. If you would invest 76.00 in Globex Mining Enterprises on December 22, 2024 and sell it today you would earn a total of 26.00 from holding Globex Mining Enterprises or generate 34.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Globex Mining Enterprises vs. ONEOK Inc
Performance |
Timeline |
Globex Mining Enterprises |
ONEOK Inc |
Globex Mining and ONEOK Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Globex Mining and ONEOK
The main advantage of trading using opposite Globex Mining and ONEOK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globex Mining 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.Globex Mining vs. Dalata Hotel Group | Globex Mining vs. CeoTronics AG | Globex Mining vs. Cars Inc | Globex Mining vs. InterContinental Hotels Group |
ONEOK vs. GRIFFIN MINING LTD | ONEOK vs. SmarTone Telecommunications Holdings | ONEOK vs. Jacquet Metal Service | ONEOK vs. MAGNUM MINING EXP |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |