Correlation Between Castor Maritime and ONEOK
Can any of the company-specific risk be diversified away by investing in both Castor Maritime 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 Castor Maritime and ONEOK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Castor Maritime and ONEOK Inc, you can compare the effects of market volatilities on Castor Maritime 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 Castor Maritime with a short position of ONEOK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Castor Maritime and ONEOK.
Diversification Opportunities for Castor Maritime and ONEOK
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Castor and ONEOK is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Castor Maritime and ONEOK Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONEOK Inc and Castor Maritime 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 Castor Maritime 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 Castor Maritime i.e., Castor Maritime and ONEOK go up and down completely randomly.
Pair Corralation between Castor Maritime and ONEOK
Given the investment horizon of 90 days Castor Maritime is expected to under-perform the ONEOK. In addition to that, Castor Maritime is 1.35 times more volatile than ONEOK Inc. It trades about -0.21 of its total potential returns per unit of risk. ONEOK Inc is currently generating about 0.06 per unit of volatility. If you would invest 9,426 in ONEOK Inc on September 24, 2024 and sell it today you would earn a total of 586.00 from holding ONEOK Inc or generate 6.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Castor Maritime vs. ONEOK Inc
Performance |
Timeline |
Castor Maritime |
ONEOK Inc |
Castor Maritime and ONEOK Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Castor Maritime and ONEOK
The main advantage of trading using opposite Castor Maritime and ONEOK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Castor Maritime 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.Castor Maritime vs. Pyxis Tankers | Castor Maritime vs. Pacific Basin Shipping | Castor Maritime vs. dAmico International Shipping | Castor Maritime vs. Danaos |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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