Correlation Between Okta and BNP Paribas
Can any of the company-specific risk be diversified away by investing in both Okta and BNP Paribas 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 BNP Paribas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okta Inc and BNP Paribas SA, you can compare the effects of market volatilities on Okta and BNP Paribas 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 BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and BNP Paribas.
Diversification Opportunities for Okta and BNP Paribas
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Okta and BNP is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and BNP Paribas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNP Paribas 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 BNP Paribas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNP Paribas SA has no effect on the direction of Okta i.e., Okta and BNP Paribas go up and down completely randomly.
Pair Corralation between Okta and BNP Paribas
Given the investment horizon of 90 days Okta Inc is expected to generate 1.05 times more return on investment than BNP Paribas. However, Okta is 1.05 times more volatile than BNP Paribas SA. It trades about 0.12 of its potential returns per unit of risk. BNP Paribas SA is currently generating about -0.51 per unit of risk. If you would invest 7,325 in Okta Inc on August 28, 2024 and sell it today you would earn a total of 325.00 from holding Okta Inc or generate 4.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Okta Inc vs. BNP Paribas SA
Performance |
| Timeline |
| Okta Inc |
| BNP Paribas SA |
Okta and BNP Paribas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and BNP Paribas
The main advantage of trading using opposite Okta and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, BNP Paribas 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 BNP Paribas will offset losses from the drop in BNP Paribas' long position.The idea behind Okta Inc and BNP Paribas 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.| BNP Paribas vs. Societe Generale ADR | BNP Paribas vs. Intesa Sanpaolo SpA | BNP Paribas vs. Commerzbank AG PK | BNP Paribas vs. Swedbank 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |