Correlation Between ONEOK and Naturhouse Health
Can any of the company-specific risk be diversified away by investing in both ONEOK and Naturhouse Health 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 ONEOK and Naturhouse Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ONEOK Inc and Naturhouse Health SA, you can compare the effects of market volatilities on ONEOK and Naturhouse Health 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 ONEOK with a short position of Naturhouse Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of ONEOK and Naturhouse Health.
Diversification Opportunities for ONEOK and Naturhouse Health
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between ONEOK and Naturhouse is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding ONEOK Inc and Naturhouse Health SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Naturhouse Health and ONEOK 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 ONEOK Inc are associated (or correlated) with Naturhouse Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Naturhouse Health has no effect on the direction of ONEOK i.e., ONEOK and Naturhouse Health go up and down completely randomly.
Pair Corralation between ONEOK and Naturhouse Health
Assuming the 90 days trading horizon ONEOK Inc is expected to under-perform the Naturhouse Health. In addition to that, ONEOK is 1.37 times more volatile than Naturhouse Health SA. It trades about -0.1 of its total potential returns per unit of risk. Naturhouse Health SA is currently generating about 0.03 per unit of volatility. If you would invest 171.00 in Naturhouse Health SA on November 4, 2024 and sell it today you would earn a total of 1.00 from holding Naturhouse Health SA or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
ONEOK Inc vs. Naturhouse Health SA
Performance |
| Timeline |
| ONEOK Inc |
| Naturhouse Health |
ONEOK and Naturhouse Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ONEOK and Naturhouse Health
The main advantage of trading using opposite ONEOK and Naturhouse Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ONEOK position performs unexpectedly, Naturhouse Health 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 Naturhouse Health will offset losses from the drop in Naturhouse Health's long position.| ONEOK vs. BW Offshore | ONEOK vs. Amedeo Air Four | ONEOK vs. Zegona Communications Plc | ONEOK vs. Verizon Communications |
| Naturhouse Health vs. First Class Metals | Naturhouse Health vs. Wheaton Precious Metals | Naturhouse Health vs. Air Products Chemicals | Naturhouse Health vs. Power Metal Resources |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |