Correlation Between VIVA WINE and ONEOK

Can any of the company-specific risk be diversified away by investing in both VIVA WINE 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 VIVA WINE and ONEOK into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between VIVA WINE GROUP and ONEOK Inc, you can compare the effects of market volatilities on VIVA WINE 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 VIVA WINE with a short position of ONEOK. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIVA WINE and ONEOK.

Diversification Opportunities for VIVA WINE and ONEOK

-0.23

Correlation Coefficient

VIVA WINE  ONEOK

Very good diversification

The 3 months correlation between VIVA and ONEOK is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding VIVA WINE GROUP and ONEOK Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONEOK Inc and VIVA WINE 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 VIVA WINE GROUP 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 VIVA WINE i.e., VIVA WINE and ONEOK go up and down completely randomly.

Pair Corralation between VIVA WINE and ONEOK

Assuming the 90 days horizon VIVA WINE GROUP is expected to generate 1.04 times more return on investment than ONEOK. However, VIVA WINE is 1.04 times more volatile than ONEOK Inc. It trades about 0.05 of its potential returns per unit of risk. ONEOK Inc is currently generating about 0.04 per unit of risk. If you would invest  252.00  in VIVA WINE GROUP on March 27, 2025 and sell it today you would earn a total of  99.00  from holding VIVA WINE GROUP or generate 39.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

VIVA WINE GROUP  vs.  ONEOK Inc

VIVA WINE GROUP

Risk-Adjusted Performance

Very Weak

Over the last 90 days VIVA WINE GROUP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, VIVA WINE is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

ONEOK Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days ONEOK Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in July 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with VIVA WINE and ONEOK

The main advantage of trading using opposite VIVA WINE and ONEOK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIVA WINE 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 VIVA WINE GROUP and ONEOK Inc 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 Transaction History module to view history of all your transactions and understand their impact on performance.