Correlation Between Falcon Oil and ONEOK
Can any of the company-specific risk be diversified away by investing in both Falcon Oil 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 Falcon Oil and ONEOK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Falcon Oil Gas and ONEOK Inc, you can compare the effects of market volatilities on Falcon Oil 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 Falcon Oil with a short position of ONEOK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Falcon Oil and ONEOK.
Diversification Opportunities for Falcon Oil and ONEOK
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Falcon and ONEOK is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Falcon Oil Gas and ONEOK Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONEOK Inc and Falcon Oil 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 Falcon Oil Gas 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 Falcon Oil i.e., Falcon Oil and ONEOK go up and down completely randomly.
Pair Corralation between Falcon Oil and ONEOK
Assuming the 90 days trading horizon Falcon Oil Gas is expected to under-perform the ONEOK. In addition to that, Falcon Oil is 2.03 times more volatile than ONEOK Inc. It trades about -0.02 of its total potential returns per unit of risk. ONEOK Inc is currently generating about 0.07 per unit of volatility. If you would invest 6,254 in ONEOK Inc on October 10, 2024 and sell it today you would earn a total of 3,989 from holding ONEOK Inc or generate 63.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.4% |
| Values | Daily Returns |
Falcon Oil Gas vs. ONEOK Inc
Performance |
| Timeline |
| Falcon Oil Gas |
| ONEOK Inc |
Falcon Oil and ONEOK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Falcon Oil and ONEOK
The main advantage of trading using opposite Falcon Oil and ONEOK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Falcon Oil 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.| Falcon Oil vs. Batm Advanced Communications | Falcon Oil vs. First Class Metals | Falcon Oil vs. Capital Metals PLC | Falcon Oil vs. Gamma Communications PLC |
| ONEOK vs. Roadside Real Estate | ONEOK vs. Gamma Communications PLC | ONEOK vs. Batm Advanced Communications | ONEOK vs. Martin Marietta Materials |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |