Correlation Between Beyond Meat and ONEOK
Can any of the company-specific risk be diversified away by investing in both Beyond Meat 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 Beyond Meat and ONEOK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beyond Meat and ONEOK Inc, you can compare the effects of market volatilities on Beyond Meat 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 Beyond Meat with a short position of ONEOK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyond Meat and ONEOK.
Diversification Opportunities for Beyond Meat and ONEOK
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beyond and ONEOK is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Meat and ONEOK Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONEOK Inc and Beyond Meat 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 Beyond Meat 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 Beyond Meat i.e., Beyond Meat and ONEOK go up and down completely randomly.
Pair Corralation between Beyond Meat and ONEOK
Assuming the 90 days trading horizon Beyond Meat is expected to under-perform the ONEOK. But the stock apears to be less risky and, when comparing its historical volatility, Beyond Meat is 1.1 times less risky than ONEOK. The stock trades about -0.14 of its potential returns per unit of risk. The ONEOK Inc is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 26,962 in ONEOK Inc on September 1, 2024 and sell it today you would earn a total of 5,766 from holding ONEOK Inc or generate 21.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Beyond Meat vs. ONEOK Inc
Performance |
| Timeline |
| Beyond Meat |
| ONEOK Inc |
Beyond Meat and ONEOK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beyond Meat and ONEOK
The main advantage of trading using opposite Beyond Meat and ONEOK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beyond Meat 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.| Beyond Meat vs. JBS SA | Beyond Meat vs. M Dias Branco | Beyond Meat vs. Marfrig Global Foods | Beyond Meat vs. Camil Alimentos SA |
| ONEOK vs. Paycom Software | ONEOK vs. Micron Technology | ONEOK vs. Charter Communications | ONEOK vs. Beyond Meat |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |