Correlation Between Batm Advanced and ONEOK
Can any of the company-specific risk be diversified away by investing in both Batm Advanced 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 Batm Advanced and ONEOK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Batm Advanced Communications and ONEOK Inc, you can compare the effects of market volatilities on Batm Advanced 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 Batm Advanced with a short position of ONEOK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Batm Advanced and ONEOK.
Diversification Opportunities for Batm Advanced and ONEOK
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Batm and ONEOK is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Batm Advanced Communications and ONEOK Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONEOK Inc and Batm Advanced 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 Batm Advanced Communications 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 Batm Advanced i.e., Batm Advanced and ONEOK go up and down completely randomly.
Pair Corralation between Batm Advanced and ONEOK
Assuming the 90 days trading horizon Batm Advanced is expected to generate 1.43 times less return on investment than ONEOK. In addition to that, Batm Advanced is 1.34 times more volatile than ONEOK Inc. It trades about 0.05 of its total potential returns per unit of risk. ONEOK Inc is currently generating about 0.09 per unit of volatility. If you would invest 9,485 in ONEOK Inc on October 26, 2024 and sell it today you would earn a total of 977.00 from holding ONEOK Inc or generate 10.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Batm Advanced Communications vs. ONEOK Inc
Performance |
| Timeline |
| Batm Advanced Commun |
| ONEOK Inc |
Batm Advanced and ONEOK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Batm Advanced and ONEOK
The main advantage of trading using opposite Batm Advanced and ONEOK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Batm Advanced 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.| Batm Advanced vs. Toyota Motor Corp | Batm Advanced vs. SoftBank Group Corp | Batm Advanced vs. Halyk Bank of | Batm Advanced vs. Samsung Electronics Co |
| ONEOK vs. CVS Health Corp | ONEOK vs. Inspiration Healthcare Group | ONEOK vs. Teradata Corp | ONEOK vs. Rosslyn Data Technologies |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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