Correlation Between Okta and China Marine
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By analyzing existing cross correlation between Okta Inc and China Marine Information, you can compare the effects of market volatilities on Okta and China Marine 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 China Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and China Marine.
Diversification Opportunities for Okta and China Marine
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Okta and China is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and China Marine Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Marine Information 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 China Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Marine Information has no effect on the direction of Okta i.e., Okta and China Marine go up and down completely randomly.
Pair Corralation between Okta and China Marine
Given the investment horizon of 90 days Okta Inc is expected to generate 0.65 times more return on investment than China Marine. However, Okta Inc is 1.54 times less risky than China Marine. It trades about 0.22 of its potential returns per unit of risk. China Marine Information is currently generating about -0.32 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 Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Okta Inc vs. China Marine Information
Performance |
| Timeline |
| Okta Inc |
| China Marine Information |
Okta and China Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and China Marine
The main advantage of trading using opposite Okta and China Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, China Marine 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 China Marine will offset losses from the drop in China Marine's long position.The idea behind Okta Inc and China Marine Information 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.| China Marine vs. Ming Yang Smart | China Marine vs. 159681 | China Marine vs. 159005 | China Marine vs. Loctek Ergonomic Technology |
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.
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