Correlation Between Okta and Samsung Publishing
Can any of the company-specific risk be diversified away by investing in both Okta and Samsung Publishing at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Okta and Samsung Publishing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okta Inc and Samsung Publishing Co, you can compare the effects of market volatilities on Okta and Samsung Publishing 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 Samsung Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and Samsung Publishing.
Diversification Opportunities for Okta and Samsung Publishing
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Okta and Samsung is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and Samsung Publishing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Publishing 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 Samsung Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Publishing has no effect on the direction of Okta i.e., Okta and Samsung Publishing go up and down completely randomly.
Pair Corralation between Okta and Samsung Publishing
Given the investment horizon of 90 days Okta Inc is expected to generate 0.53 times more return on investment than Samsung Publishing. However, Okta Inc is 1.89 times less risky than Samsung Publishing. It trades about 0.22 of its potential returns per unit of risk. Samsung Publishing Co is currently generating about -0.01 per unit of risk. If you would invest 7,189 in Okta Inc on September 1, 2024 and sell it today you would earn a total of 567.00 from holding Okta Inc or generate 7.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Okta Inc vs. Samsung Publishing Co
Performance |
| Timeline |
| Okta Inc |
| Samsung Publishing |
Okta and Samsung Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and Samsung Publishing
The main advantage of trading using opposite Okta and Samsung Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, Samsung Publishing 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 Samsung Publishing will offset losses from the drop in Samsung Publishing's long position.The idea behind Okta Inc and Samsung Publishing Co 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.| Samsung Publishing vs. AptaBio Therapeutics | Samsung Publishing vs. Daewoo SBI SPAC | Samsung Publishing vs. Dream Security co | Samsung Publishing vs. Microfriend |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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