Correlation Between Beowulf Mining and ONEOK

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

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

Diversification Opportunities for Beowulf Mining and ONEOK

-0.19

Correlation Coefficient

Beowulf Mining  ONEOK

Good diversification

The 3 months correlation between Beowulf and ONEOK is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Beowulf Mining and ONEOK Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONEOK Inc and Beowulf Mining 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 Beowulf Mining 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 Beowulf Mining i.e., Beowulf Mining and ONEOK go up and down completely randomly.

Pair Corralation between Beowulf Mining and ONEOK

Assuming the 90 days trading horizon Beowulf Mining is expected to under-perform the ONEOK. In addition to that, Beowulf Mining is 2.08 times more volatile than ONEOK Inc. It trades about -0.12 of its total potential returns per unit of risk. ONEOK Inc is currently generating about 0.1 per unit of volatility. If you would invest  9,285  in ONEOK Inc on October 8, 2024 and sell it today you would earn a total of  1,018  from holding ONEOK Inc or generate 10.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Beowulf Mining  vs.  ONEOK Inc

Beowulf Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Beowulf Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

ONEOK Inc

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ONEOK Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, ONEOK may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Beowulf Mining and ONEOK

The main advantage of trading using opposite Beowulf Mining and ONEOK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beowulf Mining 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 Beowulf Mining 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.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..