OGE : OGE Energy low volatility play

OGE Energy is a low volatility stock and, this help you to have a good risk-adjusted return. This utility company operates mainly in Oklahoma and Arkansas. OGE operates more than 7500 miles of natural gas pipelines and two nat gas storage facilities that can store up to 23 billion cubic feet. They sell electricity to more than 750,000 retail customers and to many institutional customers. OGE Energy also offer their clients to receive green energy, if the client pay a premium on each 100kWh their electricity will be produced by wind power. OGE's wind power program is one of the largest in the US with 170 megawatts of power, enough electricity to power about 51,000 homes. The Oklahoma-based company also generates electricity from low-sulfur Wyoming coal for a total output of 6,200 megawatts. OGE utilizes natural gas as a boiler fuel to run certain gas fired generating plants to make electricity for its customers. The electric transmission and distribution systems span 30,000 square miles. The stock had a correlation between 0.16 and 0.38 with the USO ETF since the year started. The OGE/USO correlation is actually at 0.16, which is very non-correlated. However, OGE has a 0.54 correlation with the S&P500. The decision to have this company featured was based on technical analysis. The stock is higher than 20, 50 and 200 DMAs and the two shorter-term DMAs are looking up. There is possible resistance around 35.50. Be aware that 2007 was the only year since 2002 that the stock had a negative yearly return. The stock is down 5.5% year to date.