Correlation Between Okta and ShenZhen Yitoa
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By analyzing existing cross correlation between Okta Inc and ShenZhen Yitoa Intelligent, you can compare the effects of market volatilities on Okta and ShenZhen Yitoa 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 ShenZhen Yitoa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and ShenZhen Yitoa.
Diversification Opportunities for Okta and ShenZhen Yitoa
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Okta and ShenZhen is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and ShenZhen Yitoa Intelligent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ShenZhen Yitoa Intel 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 ShenZhen Yitoa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ShenZhen Yitoa Intel has no effect on the direction of Okta i.e., Okta and ShenZhen Yitoa go up and down completely randomly.
Pair Corralation between Okta and ShenZhen Yitoa
Given the investment horizon of 90 days Okta is expected to generate 3.04 times less return on investment than ShenZhen Yitoa. But when comparing it to its historical volatility, Okta Inc is 2.26 times less risky than ShenZhen Yitoa. It trades about 0.13 of its potential returns per unit of risk. ShenZhen Yitoa Intelligent is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 754.00 in ShenZhen Yitoa Intelligent on August 29, 2024 and sell it today you would earn a total of 112.00 from holding ShenZhen Yitoa Intelligent or generate 14.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Okta Inc vs. ShenZhen Yitoa Intelligent
Performance |
| Timeline |
| Okta Inc |
| ShenZhen Yitoa Intel |
Okta and ShenZhen Yitoa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and ShenZhen Yitoa
The main advantage of trading using opposite Okta and ShenZhen Yitoa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, ShenZhen Yitoa 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 ShenZhen Yitoa will offset losses from the drop in ShenZhen Yitoa's long position.The idea behind Okta Inc and ShenZhen Yitoa Intelligent 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.| ShenZhen Yitoa vs. Nanjing Putian Telecommunications | ShenZhen Yitoa vs. Shenzhen Hifuture Electric | ShenZhen Yitoa vs. Shenyang Huitian Thermal | ShenZhen Yitoa vs. Jiangsu Xinning Modern |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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