Correlation Between Old Dominion and Oklo
Can any of the company-specific risk be diversified away by investing in both Old Dominion and Oklo 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 Old Dominion and Oklo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Dominion Freight and Oklo Inc, you can compare the effects of market volatilities on Old Dominion and Oklo 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 Old Dominion with a short position of Oklo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Dominion and Oklo.
Diversification Opportunities for Old Dominion and Oklo
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Old and Oklo is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Old Dominion Freight and Oklo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oklo Inc and Old Dominion 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 Old Dominion Freight are associated (or correlated) with Oklo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oklo Inc has no effect on the direction of Old Dominion i.e., Old Dominion and Oklo go up and down completely randomly.
Pair Corralation between Old Dominion and Oklo
Given the investment horizon of 90 days Old Dominion is expected to generate 1.52 times less return on investment than Oklo. But when comparing it to its historical volatility, Old Dominion Freight is 3.49 times less risky than Oklo. It trades about 0.18 of its potential returns per unit of risk. Oklo Inc is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,105 in Oklo Inc on September 3, 2024 and sell it today you would earn a total of 118.00 from holding Oklo Inc or generate 5.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Old Dominion Freight vs. Oklo Inc
Performance |
| Timeline |
| Old Dominion Freight |
| Oklo Inc |
Old Dominion and Oklo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Dominion and Oklo
The main advantage of trading using opposite Old Dominion and Oklo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Dominion position performs unexpectedly, Oklo 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 Oklo will offset losses from the drop in Oklo's long position.| Old Dominion vs. ArcBest Corp | Old Dominion vs. Marten Transport | Old Dominion vs. Werner Enterprises | Old Dominion vs. Knight Transportation |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |