Correlation Between Inspiration Healthcare and ONEOK
Can any of the company-specific risk be diversified away by investing in both Inspiration Healthcare 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 Inspiration Healthcare and ONEOK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inspiration Healthcare Group and ONEOK Inc, you can compare the effects of market volatilities on Inspiration Healthcare 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 Inspiration Healthcare with a short position of ONEOK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspiration Healthcare and ONEOK.
Diversification Opportunities for Inspiration Healthcare and ONEOK
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Inspiration and ONEOK is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Inspiration Healthcare Group and ONEOK Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONEOK Inc and Inspiration Healthcare 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 Inspiration Healthcare 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 Inspiration Healthcare i.e., Inspiration Healthcare and ONEOK go up and down completely randomly.
Pair Corralation between Inspiration Healthcare and ONEOK
Assuming the 90 days trading horizon Inspiration Healthcare Group is expected to under-perform the ONEOK. In addition to that, Inspiration Healthcare is 1.23 times more volatile than ONEOK Inc. It trades about -0.26 of its total potential returns per unit of risk. ONEOK Inc is currently generating about 0.13 per unit of volatility. If you would invest 7,984 in ONEOK Inc on October 26, 2024 and sell it today you would earn a total of 2,478 from holding ONEOK Inc or generate 31.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.43% |
| Values | Daily Returns |
Inspiration Healthcare Group vs. ONEOK Inc
Performance |
| Timeline |
| Inspiration Healthcare |
| ONEOK Inc |
Inspiration Healthcare and ONEOK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inspiration Healthcare and ONEOK
The main advantage of trading using opposite Inspiration Healthcare and ONEOK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspiration Healthcare 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.| Inspiration Healthcare vs. Empire Metals Limited | Inspiration Healthcare vs. Cornish Metals | Inspiration Healthcare vs. Livermore Investments Group | Inspiration Healthcare vs. Bisichi Mining PLC |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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