Correlation Between Okta and Bintang Oto
Can any of the company-specific risk be diversified away by investing in both Okta and Bintang Oto 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 Bintang Oto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okta Inc and Bintang Oto Global, you can compare the effects of market volatilities on Okta and Bintang Oto 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 Bintang Oto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and Bintang Oto.
Diversification Opportunities for Okta and Bintang Oto
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Okta and Bintang is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and Bintang Oto Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bintang Oto Global 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 Bintang Oto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bintang Oto Global has no effect on the direction of Okta i.e., Okta and Bintang Oto go up and down completely randomly.
Pair Corralation between Okta and Bintang Oto
Given the investment horizon of 90 days Okta Inc is expected to generate 1.51 times more return on investment than Bintang Oto. However, Okta is 1.51 times more volatile than Bintang Oto Global. It trades about 0.13 of its potential returns per unit of risk. Bintang Oto Global is currently generating about -0.45 per unit of risk. If you would invest 7,325 in Okta Inc on August 29, 2024 and sell it today you would earn a total of 358.00 from holding Okta Inc or generate 4.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Okta Inc vs. Bintang Oto Global
Performance |
| Timeline |
| Okta Inc |
| Bintang Oto Global |
Okta and Bintang Oto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and Bintang Oto
The main advantage of trading using opposite Okta and Bintang Oto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, Bintang Oto 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 Bintang Oto will offset losses from the drop in Bintang Oto's long position.The idea behind Okta Inc and Bintang Oto Global 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.| Bintang Oto vs. Surya Permata Andalan | Bintang Oto vs. Aneka Gas Industri | Bintang Oto vs. Buana Listya Tama | Bintang Oto vs. Trisula Textile Industries |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |