Correlation Between ONEOK and Air Lease
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By analyzing existing cross correlation between ONEOK INC NEW and Air Lease, you can compare the effects of market volatilities on ONEOK and Air Lease 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 Air Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of ONEOK and Air Lease.
Diversification Opportunities for ONEOK and Air Lease
Excellent diversification
The 3 months correlation between ONEOK and Air is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding ONEOK INC NEW and Air Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Lease 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 Air Lease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Lease has no effect on the direction of ONEOK i.e., ONEOK and Air Lease go up and down completely randomly.
Pair Corralation between ONEOK and Air Lease
Assuming the 90 days trading horizon ONEOK INC NEW is expected to generate 26.58 times more return on investment than Air Lease. However, ONEOK is 26.58 times more volatile than Air Lease. It trades about 0.04 of its potential returns per unit of risk. Air Lease is currently generating about 0.05 per unit of risk. If you would invest 9,038 in ONEOK INC NEW on August 30, 2024 and sell it today you would lose (885.00) from holding ONEOK INC NEW or give up 9.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.1% |
| Values | Daily Returns |
ONEOK INC NEW vs. Air Lease
Performance |
| Timeline |
| ONEOK INC NEW |
| Air Lease |
ONEOK and Air Lease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ONEOK and Air Lease
The main advantage of trading using opposite ONEOK and Air Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ONEOK position performs unexpectedly, Air Lease 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 Air Lease will offset losses from the drop in Air Lease's long position.| ONEOK vs. Getty Realty | ONEOK vs. Olympic Steel | ONEOK vs. SunLink Health Systems | ONEOK vs. Bausch Lomb Corp |
| Air Lease vs. Alta Equipment Group | Air Lease vs. McGrath RentCorp | Air Lease vs. Herc Holdings | Air Lease vs. HE Equipment Services |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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