Correlation Between Okta and New York
Can any of the company-specific risk be diversified away by investing in both Okta and New York 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 New York into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okta Inc and New York Municipal, you can compare the effects of market volatilities on Okta and New York 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 New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and New York.
Diversification Opportunities for Okta and New York
Very good diversification
The 3 months correlation between Okta and New is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and New York Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York Municipal 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 New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York Municipal has no effect on the direction of Okta i.e., Okta and New York go up and down completely randomly.
Pair Corralation between Okta and New York
Given the investment horizon of 90 days Okta Inc is not expected to generate positive returns. Moreover, Okta is 21.14 times more volatile than New York Municipal. It trades away all of its potential returns to assume current level of volatility. New York Municipal is currently generating about 0.08 per unit of risk. If you would invest 1,322 in New York Municipal on August 28, 2024 and sell it today you would earn a total of 30.00 from holding New York Municipal or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.52% |
| Values | Daily Returns |
Okta Inc vs. New York Municipal
Performance |
| Timeline |
| Okta Inc |
| New York Municipal |
Okta and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and New York
The main advantage of trading using opposite Okta and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, New York 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 New York will offset losses from the drop in New York's long position.The idea behind Okta Inc and New York Municipal 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.| New York vs. Ab New York | New York vs. Opnhmr Rchstr Ltd | New York vs. California Municipal Portfolio | New York vs. Ab New Jersey |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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