Correlation Between Okta and Nanjing Xinjiekou
Specify exactly 2 symbols:
By analyzing existing cross correlation between Okta Inc and Nanjing Xinjiekou Department, you can compare the effects of market volatilities on Okta and Nanjing Xinjiekou 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 Nanjing Xinjiekou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and Nanjing Xinjiekou.
Diversification Opportunities for Okta and Nanjing Xinjiekou
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Okta and Nanjing is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and Nanjing Xinjiekou Department in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Xinjiekou 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 Nanjing Xinjiekou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Xinjiekou has no effect on the direction of Okta i.e., Okta and Nanjing Xinjiekou go up and down completely randomly.
Pair Corralation between Okta and Nanjing Xinjiekou
Given the investment horizon of 90 days Okta is expected to generate 1.78 times less return on investment than Nanjing Xinjiekou. But when comparing it to its historical volatility, Okta Inc is 2.07 times less risky than Nanjing Xinjiekou. It trades about 0.22 of its potential returns per unit of risk. Nanjing Xinjiekou Department is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 658.00 in Nanjing Xinjiekou Department on September 1, 2024 and sell it today you would earn a total of 99.00 from holding Nanjing Xinjiekou Department or generate 15.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Okta Inc vs. Nanjing Xinjiekou Department
Performance |
| Timeline |
| Okta Inc |
| Nanjing Xinjiekou |
Okta and Nanjing Xinjiekou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and Nanjing Xinjiekou
The main advantage of trading using opposite Okta and Nanjing Xinjiekou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, Nanjing Xinjiekou 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 Nanjing Xinjiekou will offset losses from the drop in Nanjing Xinjiekou's long position.The idea behind Okta Inc and Nanjing Xinjiekou Department 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.| Nanjing Xinjiekou vs. Lonkey Industrial Co | Nanjing Xinjiekou vs. China Minmetals Rare | Nanjing Xinjiekou vs. Jinhe Biotechnology Co | Nanjing Xinjiekou vs. Kingclean Electric Co |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |