Correlation Between NI Holdings and Oklo

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

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

Diversification Opportunities for NI Holdings and Oklo

-0.25

Correlation Coefficient

NI Holdings  Oklo

Very good diversification

The 3 months correlation between NODK and Oklo is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding NI Holdings and Oklo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oklo Inc and NI Holdings 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 NI Holdings 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 NI Holdings i.e., NI Holdings and Oklo go up and down completely randomly.

Pair Corralation between NI Holdings and Oklo

Given the investment horizon of 90 days NI Holdings is expected to under-perform the Oklo. But the stock apears to be less risky and, when comparing its historical volatility, NI Holdings is 6.27 times less risky than Oklo. The stock trades about -0.12 of its potential returns per unit of risk. The 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 Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

NI Holdings  vs.  Oklo Inc

NI Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days NI Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's fundamental indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

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 NI Holdings and Oklo

The main advantage of trading using opposite NI Holdings and Oklo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NI Holdings 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 NI Holdings 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.