Correlation Between Quantum Blockchain and ONEOK

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

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

Diversification Opportunities for Quantum Blockchain and ONEOK

0.8

Correlation Coefficient

Quantum Blockchain  ONEOK

Very poor diversification

The 3 months correlation between Quantum and ONEOK is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Quantum Blockchain Technologie and ONEOK Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONEOK Inc and Quantum Blockchain 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 Quantum Blockchain Technologies 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 Quantum Blockchain i.e., Quantum Blockchain and ONEOK go up and down completely randomly.

Pair Corralation between Quantum Blockchain and ONEOK

Assuming the 90 days trading horizon Quantum Blockchain Technologies is expected to generate 2.68 times more return on investment than ONEOK. However, Quantum Blockchain is 2.68 times more volatile than ONEOK Inc. It trades about -0.13 of its potential returns per unit of risk. ONEOK Inc is currently generating about -0.36 per unit of risk. If you would invest  90.00  in Quantum Blockchain Technologies on September 23, 2024 and sell it today you would lose (15.00) from holding Quantum Blockchain Technologies or give up 16.67% of portfolio value over 90 days.

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

Quantum Blockchain Technologie  vs.  ONEOK Inc

Quantum Blockchain

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Quantum Blockchain Technologies are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Quantum Blockchain exhibited solid returns over the last few months and may actually be approaching a breakup point.

ONEOK Inc

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ONEOK Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, ONEOK may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Quantum Blockchain and ONEOK

The main advantage of trading using opposite Quantum Blockchain and ONEOK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quantum Blockchain 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.

The idea behind Quantum Blockchain Technologies and ONEOK 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.