Correlation Between ONEOK and GungHo Online
Can any of the company-specific risk be diversified away by investing in both ONEOK and GungHo Online 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 ONEOK and GungHo Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ONEOK Inc and GungHo Online Entertainment, you can compare the effects of market volatilities on ONEOK and GungHo Online 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 ONEOK with a short position of GungHo Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of ONEOK and GungHo Online.
Diversification Opportunities for ONEOK and GungHo Online
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between ONEOK and GungHo is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding ONEOK Inc and GungHo Online Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GungHo Online Entert and ONEOK 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 ONEOK Inc are associated (or correlated) with GungHo Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GungHo Online Entert has no effect on the direction of ONEOK i.e., ONEOK and GungHo Online go up and down completely randomly.
Pair Corralation between ONEOK and GungHo Online
Assuming the 90 days horizon ONEOK Inc is expected to generate 0.64 times more return on investment than GungHo Online. However, ONEOK Inc is 1.56 times less risky than GungHo Online. It trades about 0.17 of its potential returns per unit of risk. GungHo Online Entertainment is currently generating about 0.1 per unit of risk. If you would invest 6,766 in ONEOK Inc on September 1, 2024 and sell it today you would earn a total of 3,860 from holding ONEOK Inc or generate 57.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.48% |
| Values | Daily Returns |
ONEOK Inc vs. GungHo Online Entertainment
Performance |
| Timeline |
| ONEOK Inc |
| GungHo Online Entert |
ONEOK and GungHo Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ONEOK and GungHo Online
The main advantage of trading using opposite ONEOK and GungHo Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ONEOK position performs unexpectedly, GungHo Online 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 GungHo Online will offset losses from the drop in GungHo Online's long position.| ONEOK vs. GungHo Online Entertainment | ONEOK vs. Hollywood Bowl Group | ONEOK vs. Seven West Media | ONEOK vs. PLAYSTUDIOS A DL 0001 |
| GungHo Online vs. ULTRA CLEAN HLDGS | GungHo Online vs. Broadcom | GungHo Online vs. UNITED RENTALS | GungHo Online vs. Nishi Nippon Railroad Co |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |