Correlation Between Okta and Logista
Can any of the company-specific risk be diversified away by investing in both Okta and Logista 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 Logista into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okta Inc and Logista, you can compare the effects of market volatilities on Okta and Logista 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 Logista. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and Logista.
Diversification Opportunities for Okta and Logista
Good diversification
The 3 months correlation between Okta and Logista is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and Logista in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logista 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 Logista. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logista has no effect on the direction of Okta i.e., Okta and Logista go up and down completely randomly.
Pair Corralation between Okta and Logista
Given the investment horizon of 90 days Okta Inc is expected to under-perform the Logista. In addition to that, Okta is 2.68 times more volatile than Logista. It trades about -0.04 of its total potential returns per unit of risk. Logista is currently generating about 0.13 per unit of volatility. If you would invest 2,592 in Logista on August 29, 2024 and sell it today you would earn a total of 416.00 from holding Logista or generate 16.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Okta Inc vs. Logista
Performance |
| Timeline |
| Okta Inc |
| Logista |
Okta and Logista Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and Logista
The main advantage of trading using opposite Okta and Logista positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, Logista 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 Logista will offset losses from the drop in Logista's long position.The idea behind Okta Inc and Logista 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.| Logista vs. Austevoll Seafood ASA | Logista vs. Canadian Utilities Limited | Logista vs. Methode Electronics | Logista vs. Nucletron Electronic Aktiengesellschaft |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |