Correlation Between Okta and Concrete Pumping
Can any of the company-specific risk be diversified away by investing in both Okta and Concrete Pumping 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 Concrete Pumping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okta Inc and Concrete Pumping Holdings, you can compare the effects of market volatilities on Okta and Concrete Pumping 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 Concrete Pumping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and Concrete Pumping.
Diversification Opportunities for Okta and Concrete Pumping
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Okta and Concrete is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and Concrete Pumping Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concrete Pumping Holdings 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 Concrete Pumping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concrete Pumping Holdings has no effect on the direction of Okta i.e., Okta and Concrete Pumping go up and down completely randomly.
Pair Corralation between Okta and Concrete Pumping
Given the investment horizon of 90 days Okta is expected to generate 1.34 times less return on investment than Concrete Pumping. But when comparing it to its historical volatility, Okta Inc is 6.33 times less risky than Concrete Pumping. It trades about 0.03 of its potential returns per unit of risk. Concrete Pumping Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 32.00 in Concrete Pumping Holdings on August 29, 2024 and sell it today you would lose (29.10) from holding Concrete Pumping Holdings or give up 90.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 31.25% |
| Values | Daily Returns |
Okta Inc vs. Concrete Pumping Holdings
Performance |
| Timeline |
| Okta Inc |
| Concrete Pumping Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Okta and Concrete Pumping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and Concrete Pumping
The main advantage of trading using opposite Okta and Concrete Pumping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, Concrete Pumping 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 Concrete Pumping will offset losses from the drop in Concrete Pumping's long position.The idea behind Okta Inc and Concrete Pumping Holdings 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.| Concrete Pumping vs. SBM Offshore NV | Concrete Pumping vs. Saia Inc | Concrete Pumping vs. Kandi Technologies Group | Concrete Pumping vs. Digi International |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |