Correlation Between ONEOK and Papaya Growth
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By analyzing existing cross correlation between ONEOK INC NEW and Papaya Growth Opportunity, you can compare the effects of market volatilities on ONEOK and Papaya Growth 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 Papaya Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of ONEOK and Papaya Growth.
Diversification Opportunities for ONEOK and Papaya Growth
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between ONEOK and Papaya is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding ONEOK INC NEW and Papaya Growth Opportunity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Papaya Growth Opportunity 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 NEW are associated (or correlated) with Papaya Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Papaya Growth Opportunity has no effect on the direction of ONEOK i.e., ONEOK and Papaya Growth go up and down completely randomly.
Pair Corralation between ONEOK and Papaya Growth
Assuming the 90 days trading horizon ONEOK INC NEW is expected to generate 39.19 times more return on investment than Papaya Growth. However, ONEOK is 39.19 times more volatile than Papaya Growth Opportunity. It trades about 0.05 of its potential returns per unit of risk. Papaya Growth Opportunity is currently generating about 0.02 per unit of risk. If you would invest 10,026 in ONEOK INC NEW on September 2, 2024 and sell it today you would lose (476.00) from holding ONEOK INC NEW or give up 4.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 84.68% |
| Values | Daily Returns |
ONEOK INC NEW vs. Papaya Growth Opportunity
Performance |
| Timeline |
| ONEOK INC NEW |
| Papaya Growth Opportunity |
ONEOK and Papaya Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ONEOK and Papaya Growth
The main advantage of trading using opposite ONEOK and Papaya Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ONEOK position performs unexpectedly, Papaya Growth 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 Papaya Growth will offset losses from the drop in Papaya Growth's long position.The idea behind ONEOK INC NEW and Papaya Growth Opportunity pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Papaya Growth vs. Life Time Group | Papaya Growth vs. Acco Brands | Papaya Growth vs. Afya | Papaya Growth vs. Bright Scholar Education |
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 Stocks Directory module to find actively traded stocks across global markets.
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