Correlation Between ONEOK and SIEM OFFSHORE
Can any of the company-specific risk be diversified away by investing in both ONEOK and SIEM OFFSHORE 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 SIEM OFFSHORE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ONEOK Inc and SIEM OFFSHORE NEW, you can compare the effects of market volatilities on ONEOK and SIEM OFFSHORE 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 SIEM OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ONEOK and SIEM OFFSHORE.
Diversification Opportunities for ONEOK and SIEM OFFSHORE
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between ONEOK and SIEM is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding ONEOK Inc and SIEM OFFSHORE NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIEM OFFSHORE NEW 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 SIEM OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIEM OFFSHORE NEW has no effect on the direction of ONEOK i.e., ONEOK and SIEM OFFSHORE go up and down completely randomly.
Pair Corralation between ONEOK and SIEM OFFSHORE
Assuming the 90 days horizon ONEOK Inc is expected to generate 0.65 times more return on investment than SIEM OFFSHORE. However, ONEOK Inc is 1.53 times less risky than SIEM OFFSHORE. It trades about 0.29 of its potential returns per unit of risk. SIEM OFFSHORE NEW is currently generating about 0.0 per unit of risk. If you would invest 7,900 in ONEOK Inc on August 29, 2024 and sell it today you would earn a total of 2,950 from holding ONEOK Inc or generate 37.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ONEOK Inc vs. SIEM OFFSHORE NEW
Performance |
| Timeline |
| ONEOK Inc |
| SIEM OFFSHORE NEW |
ONEOK and SIEM OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ONEOK and SIEM OFFSHORE
The main advantage of trading using opposite ONEOK and SIEM OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ONEOK position performs unexpectedly, SIEM OFFSHORE 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 SIEM OFFSHORE will offset losses from the drop in SIEM OFFSHORE's long position.| ONEOK vs. BORR DRILLING NEW | ONEOK vs. Apollo Investment Corp | ONEOK vs. New Residential Investment | ONEOK vs. Meiko Electronics Co |
| SIEM OFFSHORE vs. Enbridge | SIEM OFFSHORE vs. Kinder Morgan | SIEM OFFSHORE vs. Pembina Pipeline Corp | SIEM OFFSHORE vs. Targa Resources Corp |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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