Correlation Between Okta and Shaanxi Energy
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By analyzing existing cross correlation between Okta Inc and Shaanxi Energy Investment, you can compare the effects of market volatilities on Okta and Shaanxi Energy 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 Shaanxi Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and Shaanxi Energy.
Diversification Opportunities for Okta and Shaanxi Energy
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Okta and Shaanxi is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and Shaanxi Energy Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Energy Investment 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 Shaanxi Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Energy Investment has no effect on the direction of Okta i.e., Okta and Shaanxi Energy go up and down completely randomly.
Pair Corralation between Okta and Shaanxi Energy
Given the investment horizon of 90 days Okta Inc is expected to generate 0.78 times more return on investment than Shaanxi Energy. However, Okta Inc is 1.28 times less risky than Shaanxi Energy. It trades about 0.02 of its potential returns per unit of risk. Shaanxi Energy Investment is currently generating about -0.03 per unit of risk. If you would invest 7,583 in Okta Inc on August 25, 2024 and sell it today you would earn a total of 74.00 from holding Okta Inc or generate 0.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 88.89% |
| Values | Daily Returns |
Okta Inc vs. Shaanxi Energy Investment
Performance |
| Timeline |
| Okta Inc |
| Shaanxi Energy Investment |
Okta and Shaanxi Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and Shaanxi Energy
The main advantage of trading using opposite Okta and Shaanxi Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, Shaanxi Energy 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 Shaanxi Energy will offset losses from the drop in Shaanxi Energy's long position.The idea behind Okta Inc and Shaanxi Energy Investment 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.| Shaanxi Energy vs. Zhejiang Kingland Pipeline | Shaanxi Energy vs. Xiangyang Automobile Bearing | Shaanxi Energy vs. Suzhou Novoprotein Scientific | Shaanxi Energy vs. COL Digital Publishing |
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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