Correlation Between Avis Budget and ONEOK
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By analyzing existing cross correlation between Avis Budget Group and ONEOK INC, you can compare the effects of market volatilities on Avis Budget 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 Avis Budget with a short position of ONEOK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avis Budget and ONEOK.
Diversification Opportunities for Avis Budget and ONEOK
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Avis and ONEOK is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Avis Budget Group and ONEOK INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONEOK INC and Avis Budget 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 Avis Budget Group 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 Avis Budget i.e., Avis Budget and ONEOK go up and down completely randomly.
Pair Corralation between Avis Budget and ONEOK
Considering the 90-day investment horizon Avis Budget Group is expected to under-perform the ONEOK. But the stock apears to be less risky and, when comparing its historical volatility, Avis Budget Group is 15.85 times less risky than ONEOK. The stock trades about -0.04 of its potential returns per unit of risk. The ONEOK INC is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 8,597 in ONEOK INC on September 12, 2024 and sell it today you would earn a total of 187.00 from holding ONEOK INC or generate 2.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 93.57% |
| Values | Daily Returns |
Avis Budget Group vs. ONEOK INC
Performance |
| Timeline |
| Avis Budget Group |
| ONEOK INC |
Avis Budget and ONEOK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avis Budget and ONEOK
The main advantage of trading using opposite Avis Budget and ONEOK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avis Budget 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.| Avis Budget vs. Hertz Global Hldgs | Avis Budget vs. Ryder System | Avis Budget vs. HE Equipment Services | Avis Budget vs. United Rentals |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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