Correlation Between GreenX Metals and ONEOK
Can any of the company-specific risk be diversified away by investing in both GreenX Metals 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 GreenX Metals and ONEOK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenX Metals and ONEOK Inc, you can compare the effects of market volatilities on GreenX Metals 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 GreenX Metals with a short position of ONEOK. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and ONEOK.
Diversification Opportunities for GreenX Metals and ONEOK
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GreenX and ONEOK is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and ONEOK Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONEOK Inc and GreenX Metals 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 GreenX Metals 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 GreenX Metals i.e., GreenX Metals and ONEOK go up and down completely randomly.
Pair Corralation between GreenX Metals and ONEOK
Assuming the 90 days trading horizon GreenX Metals is expected to under-perform the ONEOK. In addition to that, GreenX Metals is 1.19 times more volatile than ONEOK Inc. It trades about -0.02 of its total potential returns per unit of risk. ONEOK Inc is currently generating about 0.12 per unit of volatility. If you would invest 9,561 in ONEOK Inc on October 23, 2024 and sell it today you would earn a total of 1,378 from holding ONEOK Inc or generate 14.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.39% |
Values | Daily Returns |
GreenX Metals vs. ONEOK Inc
Performance |
Timeline |
GreenX Metals |
ONEOK Inc |
GreenX Metals and ONEOK Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GreenX Metals and ONEOK
The main advantage of trading using opposite GreenX Metals and ONEOK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals 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.GreenX Metals vs. Advanced Medical Solutions | GreenX Metals vs. AMG Advanced Metallurgical | GreenX Metals vs. LBG Media PLC | GreenX Metals vs. Medical Properties Trust |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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