Correlation Between Okta and Lander Sports
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By analyzing existing cross correlation between Okta Inc and Lander Sports Development, you can compare the effects of market volatilities on Okta and Lander Sports 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 Okta with a short position of Lander Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and Lander Sports.
Diversification Opportunities for Okta and Lander Sports
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Okta and Lander is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and Lander Sports Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lander Sports Development and Okta 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 Okta Inc are associated (or correlated) with Lander Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lander Sports Development has no effect on the direction of Okta i.e., Okta and Lander Sports go up and down completely randomly.
Pair Corralation between Okta and Lander Sports
Given the investment horizon of 90 days Okta Inc is expected to under-perform the Lander Sports. But the stock apears to be less risky and, when comparing its historical volatility, Okta Inc is 1.31 times less risky than Lander Sports. The stock trades about -0.06 of its potential returns per unit of risk. The Lander Sports Development is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 252.00 in Lander Sports Development on August 25, 2024 and sell it today you would earn a total of 39.00 from holding Lander Sports Development or generate 15.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.83% |
| Values | Daily Returns |
Okta Inc vs. Lander Sports Development
Performance |
| Timeline |
| Okta Inc |
| Lander Sports Development |
Okta and Lander Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and Lander Sports
The main advantage of trading using opposite Okta and Lander Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, Lander Sports 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 Lander Sports will offset losses from the drop in Lander Sports' long position.The idea behind Okta Inc and Lander Sports Development 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.| Lander Sports vs. Miracll Chemicals Co | Lander Sports vs. Shanghai Rightongene Biotechnology | Lander Sports vs. Hubei Dinglong Chemical | Lander Sports vs. Liuzhou Chemical Industry |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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