Correlation Between Zedge and ONEOK
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By analyzing existing cross correlation between Zedge Inc and ONEOK PARTNERS L, you can compare the effects of market volatilities on Zedge 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 Zedge with a short position of ONEOK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zedge and ONEOK.
Diversification Opportunities for Zedge and ONEOK
Poor diversification
The 3 months correlation between Zedge and ONEOK is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Zedge Inc and ONEOK PARTNERS L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONEOK PARTNERS L and Zedge 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 Zedge Inc 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 PARTNERS L has no effect on the direction of Zedge i.e., Zedge and ONEOK go up and down completely randomly.
Pair Corralation between Zedge and ONEOK
Given the investment horizon of 90 days Zedge is expected to generate 35.72 times less return on investment than ONEOK. But when comparing it to its historical volatility, Zedge Inc is 15.5 times less risky than ONEOK. It trades about 0.03 of its potential returns per unit of risk. ONEOK PARTNERS L is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 10,527 in ONEOK PARTNERS L on September 3, 2024 and sell it today you would lose (337.00) from holding ONEOK PARTNERS L or give up 3.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 68.28% |
| Values | Daily Returns |
Zedge Inc vs. ONEOK PARTNERS L
Performance |
| Timeline |
| Zedge Inc |
| ONEOK PARTNERS L |
Zedge and ONEOK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zedge and ONEOK
The main advantage of trading using opposite Zedge and ONEOK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zedge 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.The idea behind Zedge Inc and ONEOK PARTNERS L 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.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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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