Correlation Between Okta and Xinjiang Beixin
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By analyzing existing cross correlation between Okta Inc and Xinjiang Beixin RoadBridge, you can compare the effects of market volatilities on Okta and Xinjiang Beixin 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 Xinjiang Beixin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and Xinjiang Beixin.
Diversification Opportunities for Okta and Xinjiang Beixin
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Okta and Xinjiang is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and Xinjiang Beixin RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Beixin Road 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 Xinjiang Beixin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Beixin Road has no effect on the direction of Okta i.e., Okta and Xinjiang Beixin go up and down completely randomly.
Pair Corralation between Okta and Xinjiang Beixin
Given the investment horizon of 90 days Okta Inc is expected to generate 1.21 times more return on investment than Xinjiang Beixin. However, Okta is 1.21 times more volatile than Xinjiang Beixin RoadBridge. It trades about 0.03 of its potential returns per unit of risk. Xinjiang Beixin RoadBridge is currently generating about -0.02 per unit of risk. If you would invest 6,382 in Okta Inc on August 29, 2024 and sell it today you would earn a total of 1,301 from holding Okta Inc or generate 20.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.17% |
| Values | Daily Returns |
Okta Inc vs. Xinjiang Beixin RoadBridge
Performance |
| Timeline |
| Okta Inc |
| Xinjiang Beixin Road |
Okta and Xinjiang Beixin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and Xinjiang Beixin
The main advantage of trading using opposite Okta and Xinjiang Beixin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, Xinjiang Beixin 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 Xinjiang Beixin will offset losses from the drop in Xinjiang Beixin's long position.The idea behind Okta Inc and Xinjiang Beixin RoadBridge 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.| Xinjiang Beixin vs. PetroChina Co Ltd | Xinjiang Beixin vs. China State Construction | Xinjiang Beixin vs. China Mobile Limited | Xinjiang Beixin vs. Industrial and Commercial |
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 Correlations module to find global opportunities by holding instruments from different markets.
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