Correlation Between Okta and Yuan Longping
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By analyzing existing cross correlation between Okta Inc and Yuan Longping High tech, you can compare the effects of market volatilities on Okta and Yuan Longping 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 Yuan Longping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and Yuan Longping.
Diversification Opportunities for Okta and Yuan Longping
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Okta and Yuan is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and Yuan Longping High tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuan Longping High 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 Yuan Longping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuan Longping High has no effect on the direction of Okta i.e., Okta and Yuan Longping go up and down completely randomly.
Pair Corralation between Okta and Yuan Longping
Given the investment horizon of 90 days Okta Inc is expected to generate 1.53 times more return on investment than Yuan Longping. However, Okta is 1.53 times more volatile than Yuan Longping High tech. It trades about 0.03 of its potential returns per unit of risk. Yuan Longping High tech is currently generating about -0.04 per unit of risk. If you would invest 6,194 in Okta Inc on August 26, 2024 and sell it today you would earn a total of 1,463 from holding Okta Inc or generate 23.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.18% |
| Values | Daily Returns |
Okta Inc vs. Yuan Longping High tech
Performance |
| Timeline |
| Okta Inc |
| Yuan Longping High |
Okta and Yuan Longping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and Yuan Longping
The main advantage of trading using opposite Okta and Yuan Longping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, Yuan Longping 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 Yuan Longping will offset losses from the drop in Yuan Longping's long position.The idea behind Okta Inc and Yuan Longping High tech 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.| Yuan Longping vs. Agricultural Bank of | Yuan Longping vs. Industrial and Commercial | Yuan Longping vs. Bank of China | Yuan Longping vs. China Construction Bank |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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