Correlation Between Okta and Sanxiang Advanced
Specify exactly 2 symbols:
By analyzing existing cross correlation between Okta Inc and Sanxiang Advanced Materials, you can compare the effects of market volatilities on Okta and Sanxiang Advanced 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 Sanxiang Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and Sanxiang Advanced.
Diversification Opportunities for Okta and Sanxiang Advanced
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Okta and Sanxiang is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and Sanxiang Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanxiang Advanced 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 Sanxiang Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanxiang Advanced has no effect on the direction of Okta i.e., Okta and Sanxiang Advanced go up and down completely randomly.
Pair Corralation between Okta and Sanxiang Advanced
Given the investment horizon of 90 days Okta is expected to generate 6.32 times less return on investment than Sanxiang Advanced. But when comparing it to its historical volatility, Okta Inc is 1.32 times less risky than Sanxiang Advanced. It trades about 0.01 of its potential returns per unit of risk. Sanxiang Advanced Materials is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,020 in Sanxiang Advanced Materials on August 29, 2024 and sell it today you would earn a total of 714.00 from holding Sanxiang Advanced Materials or generate 70.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.44% |
| Values | Daily Returns |
Okta Inc vs. Sanxiang Advanced Materials
Performance |
| Timeline |
| Okta Inc |
| Sanxiang Advanced |
Okta and Sanxiang Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and Sanxiang Advanced
The main advantage of trading using opposite Okta and Sanxiang Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, Sanxiang Advanced 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 Sanxiang Advanced will offset losses from the drop in Sanxiang Advanced's long position.The idea behind Okta Inc and Sanxiang Advanced Materials 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.| Sanxiang Advanced vs. Anhui Jianghuai Automobile | Sanxiang Advanced vs. Tongyu Communication | Sanxiang Advanced vs. Changchun Faway Automobile | Sanxiang Advanced vs. Sinomach Automobile 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |