Correlation Between Okta and Access Capital
Can any of the company-specific risk be diversified away by investing in both Okta and Access Capital 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 Access Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okta Inc and Access Capital Munity, you can compare the effects of market volatilities on Okta and Access Capital 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 Access Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and Access Capital.
Diversification Opportunities for Okta and Access Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Okta and Access is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and Access Capital Munity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Access Capital Munity 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 Access Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Access Capital Munity has no effect on the direction of Okta i.e., Okta and Access Capital go up and down completely randomly.
Pair Corralation between Okta and Access Capital
Given the investment horizon of 90 days Okta Inc is expected to generate 6.35 times more return on investment than Access Capital. However, Okta is 6.35 times more volatile than Access Capital Munity. It trades about 0.03 of its potential returns per unit of risk. Access Capital Munity is currently generating about 0.03 per unit of risk. If you would invest 6,442 in Okta Inc on August 30, 2024 and sell it today you would earn a total of 1,200 from holding Okta Inc or generate 18.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Okta Inc vs. Access Capital Munity
Performance |
| Timeline |
| Okta Inc |
| Access Capital Munity |
Okta and Access Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and Access Capital
The main advantage of trading using opposite Okta and Access Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, Access Capital 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 Access Capital will offset losses from the drop in Access Capital's long position.The idea behind Okta Inc and Access Capital Munity 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.| Access Capital vs. Us Government Securities | Access Capital vs. American Funds Government | Access Capital vs. Vanguard Mortgage Backed Securities | Access Capital vs. Vanguard Gnma Fund |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |