Correlation Between Mulberry Group and ONEOK
Can any of the company-specific risk be diversified away by investing in both Mulberry Group 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 Mulberry Group and ONEOK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mulberry Group PLC and ONEOK Inc, you can compare the effects of market volatilities on Mulberry Group 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 Mulberry Group with a short position of ONEOK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mulberry Group and ONEOK.
Diversification Opportunities for Mulberry Group and ONEOK
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mulberry and ONEOK is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Mulberry Group PLC and ONEOK Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONEOK Inc and Mulberry Group 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 Mulberry Group PLC 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 Mulberry Group i.e., Mulberry Group and ONEOK go up and down completely randomly.
Pair Corralation between Mulberry Group and ONEOK
Assuming the 90 days trading horizon Mulberry Group is expected to generate 2.63 times less return on investment than ONEOK. In addition to that, Mulberry Group is 2.44 times more volatile than ONEOK Inc. It trades about 0.01 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 7,855 in ONEOK Inc on September 24, 2024 and sell it today you would earn a total of 2,130 from holding ONEOK Inc or generate 27.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.82% |
| Values | Daily Returns |
Mulberry Group PLC vs. ONEOK Inc
Performance |
| Timeline |
| Mulberry Group PLC |
| ONEOK Inc |
Mulberry Group and ONEOK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mulberry Group and ONEOK
The main advantage of trading using opposite Mulberry Group and ONEOK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mulberry Group 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.| Mulberry Group vs. Rightmove PLC | Mulberry Group vs. Bioventix | Mulberry Group vs. VeriSign | Mulberry Group vs. Games Workshop Group |
| ONEOK vs. Uniper SE | ONEOK vs. Mulberry Group PLC | ONEOK vs. London Security Plc | ONEOK vs. Triad Group PLC |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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