Correlation Between Okta and Sunny Loan
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By analyzing existing cross correlation between Okta Inc and Sunny Loan Top, you can compare the effects of market volatilities on Okta and Sunny Loan 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 Sunny Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and Sunny Loan.
Diversification Opportunities for Okta and Sunny Loan
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Okta and Sunny is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and Sunny Loan Top in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Loan Top 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 Sunny Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Loan Top has no effect on the direction of Okta i.e., Okta and Sunny Loan go up and down completely randomly.
Pair Corralation between Okta and Sunny Loan
Given the investment horizon of 90 days Okta Inc is expected to generate 0.48 times more return on investment than Sunny Loan. However, Okta Inc is 2.07 times less risky than Sunny Loan. It trades about 0.13 of its potential returns per unit of risk. Sunny Loan Top is currently generating about -0.17 per unit of risk. If you would invest 7,325 in Okta Inc on August 28, 2024 and sell it today you would earn a total of 325.00 from holding Okta Inc or generate 4.44% 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. Sunny Loan Top
Performance |
| Timeline |
| Okta Inc |
| Sunny Loan Top |
Okta and Sunny Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and Sunny Loan
The main advantage of trading using opposite Okta and Sunny Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, Sunny Loan 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 Sunny Loan will offset losses from the drop in Sunny Loan's long position.The idea behind Okta Inc and Sunny Loan Top 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.| Sunny Loan vs. Kweichow Moutai Co | Sunny Loan vs. Contemporary Amperex Technology | Sunny Loan vs. G bits Network Technology | Sunny Loan vs. BYD Co Ltd |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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