Correlation Between Okta and Cahayaputra Asa
Can any of the company-specific risk be diversified away by investing in both Okta and Cahayaputra Asa 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 Cahayaputra Asa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okta Inc and Cahayaputra Asa Keramik, you can compare the effects of market volatilities on Okta and Cahayaputra Asa 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 Cahayaputra Asa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and Cahayaputra Asa.
Diversification Opportunities for Okta and Cahayaputra Asa
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Okta and Cahayaputra is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and Cahayaputra Asa Keramik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cahayaputra Asa Keramik 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 Cahayaputra Asa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cahayaputra Asa Keramik has no effect on the direction of Okta i.e., Okta and Cahayaputra Asa go up and down completely randomly.
Pair Corralation between Okta and Cahayaputra Asa
Given the investment horizon of 90 days Okta Inc is expected to generate 0.58 times more return on investment than Cahayaputra Asa. However, Okta Inc is 1.72 times less risky than Cahayaputra Asa. It trades about 0.15 of its potential returns per unit of risk. Cahayaputra Asa Keramik is currently generating about -0.03 per unit of risk. If you would invest 7,240 in Okta Inc on August 31, 2024 and sell it today you would earn a total of 402.00 from holding Okta Inc or generate 5.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Okta Inc vs. Cahayaputra Asa Keramik
Performance |
| Timeline |
| Okta Inc |
| Cahayaputra Asa Keramik |
Okta and Cahayaputra Asa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and Cahayaputra Asa
The main advantage of trading using opposite Okta and Cahayaputra Asa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, Cahayaputra Asa 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 Cahayaputra Asa will offset losses from the drop in Cahayaputra Asa's long position.The idea behind Okta Inc and Cahayaputra Asa Keramik 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.| Cahayaputra Asa vs. Gunawan Dianjaya Steel | Cahayaputra Asa vs. Yelooo Integra Datanet | Cahayaputra Asa vs. Arita Prima Indonesia | Cahayaputra Asa vs. Bekasi Asri Pemula |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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