Correlation Between Okta and ATRYS HEALTH
Can any of the company-specific risk be diversified away by investing in both Okta and ATRYS HEALTH 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 ATRYS HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okta Inc and ATRYS HEALTH SA, you can compare the effects of market volatilities on Okta and ATRYS HEALTH 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 ATRYS HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and ATRYS HEALTH.
Diversification Opportunities for Okta and ATRYS HEALTH
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Okta and ATRYS is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and ATRYS HEALTH SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRYS HEALTH SA 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 ATRYS HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRYS HEALTH SA has no effect on the direction of Okta i.e., Okta and ATRYS HEALTH go up and down completely randomly.
Pair Corralation between Okta and ATRYS HEALTH
Given the investment horizon of 90 days Okta Inc is expected to generate 1.1 times more return on investment than ATRYS HEALTH. However, Okta is 1.1 times more volatile than ATRYS HEALTH SA. It trades about 0.02 of its potential returns per unit of risk. ATRYS HEALTH SA is currently generating about -0.04 per unit of risk. If you would invest 7,145 in Okta Inc on August 31, 2024 and sell it today you would earn a total of 611.00 from holding Okta Inc or generate 8.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.42% |
| Values | Daily Returns |
Okta Inc vs. ATRYS HEALTH SA
Performance |
| Timeline |
| Okta Inc |
| ATRYS HEALTH SA |
Okta and ATRYS HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and ATRYS HEALTH
The main advantage of trading using opposite Okta and ATRYS HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, ATRYS HEALTH 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 ATRYS HEALTH will offset losses from the drop in ATRYS HEALTH's long position.The idea behind Okta Inc and ATRYS HEALTH SA 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.| ATRYS HEALTH vs. Superior Plus Corp | ATRYS HEALTH vs. NMI Holdings | ATRYS HEALTH vs. Origin Agritech | ATRYS HEALTH vs. SIVERS SEMICONDUCTORS AB |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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