Correlation Between LINKBANCORP and BOK Financial

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

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

Diversification Opportunities for LINKBANCORP and BOK Financial

0.89

Correlation Coefficient

LINKBANCORP  BOK Financial

Very poor diversification

The 3 months correlation between LINKBANCORP and BOK is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding LINKBANCORP and BOK Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOK Financial and LINKBANCORP 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 LINKBANCORP are associated (or correlated) with BOK Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOK Financial has no effect on the direction of LINKBANCORP i.e., LINKBANCORP and BOK Financial go up and down completely randomly.

Pair Corralation between LINKBANCORP and BOK Financial

Given the investment horizon of 90 days LINKBANCORP is expected to generate 1.64 times less return on investment than BOK Financial. In addition to that, LINKBANCORP is 1.28 times more volatile than BOK Financial. It trades about 0.06 of its total potential returns per unit of risk. BOK Financial is currently generating about 0.13 per unit of volatility. If you would invest  9,315  in BOK Financial on May 1, 2025 and sell it today you would earn a total of  1,121  from holding BOK Financial or generate 12.03% return on investment over 90 days.

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

LINKBANCORP  vs.  BOK Financial

LINKBANCORP

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in LINKBANCORP are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent forward-looking signals, LINKBANCORP may actually be approaching a critical reversion point that can send shares even higher in August 2025.

BOK Financial

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BOK Financial are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating forward-looking signals, BOK Financial may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with LINKBANCORP and BOK Financial

The main advantage of trading using opposite LINKBANCORP and BOK Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LINKBANCORP position performs unexpectedly, BOK Financial 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 BOK Financial will offset losses from the drop in BOK Financial's long position.

The idea behind LINKBANCORP and BOK Financial 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.