Correlation Between Take-Two Interactive and ONEOK
Can any of the company-specific risk be diversified away by investing in both Take-Two Interactive 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 Take-Two Interactive and ONEOK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Take Two Interactive Software and ONEOK Inc, you can compare the effects of market volatilities on Take-Two Interactive 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 Take-Two Interactive with a short position of ONEOK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Take-Two Interactive and ONEOK.
Diversification Opportunities for Take-Two Interactive and ONEOK
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Take-Two and ONEOK is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Take Two Interactive Software and ONEOK Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONEOK Inc and Take-Two Interactive 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 Take Two Interactive Software 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 Take-Two Interactive i.e., Take-Two Interactive and ONEOK go up and down completely randomly.
Pair Corralation between Take-Two Interactive and ONEOK
Assuming the 90 days horizon Take Two Interactive Software is expected to under-perform the ONEOK. But the stock apears to be less risky and, when comparing its historical volatility, Take Two Interactive Software is 1.2 times less risky than ONEOK. The stock trades about -0.08 of its potential returns per unit of risk. The ONEOK Inc is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 9,835 in ONEOK Inc on November 7, 2024 and sell it today you would lose (210.00) from holding ONEOK Inc or give up 2.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Take Two Interactive Software vs. ONEOK Inc
Performance |
| Timeline |
| Take Two Interactive |
| ONEOK Inc |
Take-Two Interactive and ONEOK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Take-Two Interactive and ONEOK
The main advantage of trading using opposite Take-Two Interactive and ONEOK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Take-Two Interactive 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.| Take-Two Interactive vs. CITY OFFICE REIT | Take-Two Interactive vs. GAMING FAC SA | Take-Two Interactive vs. VIRGIN WINES UK | Take-Two Interactive vs. OFFICE DEPOT |
| ONEOK vs. Osisko Metals | ONEOK vs. Aluminum of | ONEOK vs. DAIDO METAL TD | ONEOK vs. ADRIATIC METALS LS 013355 |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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