Correlation Between Okta and Capitania Securities
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By analyzing existing cross correlation between Okta Inc and Capitania Securities II, you can compare the effects of market volatilities on Okta and Capitania Securities 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 Capitania Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and Capitania Securities.
Diversification Opportunities for Okta and Capitania Securities
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Okta and Capitania is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and Capitania Securities II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capitania Securities 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 Capitania Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capitania Securities has no effect on the direction of Okta i.e., Okta and Capitania Securities go up and down completely randomly.
Pair Corralation between Okta and Capitania Securities
Given the investment horizon of 90 days Okta Inc is expected to generate 0.7 times more return on investment than Capitania Securities. However, Okta Inc is 1.44 times less risky than Capitania Securities. It trades about 0.03 of its potential returns per unit of risk. Capitania Securities II is currently generating about -0.06 per unit of risk. If you would invest 6,194 in Okta Inc on August 24, 2024 and sell it today you would earn a total of 1,463 from holding Okta Inc or generate 23.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Okta Inc vs. Capitania Securities II
Performance |
| Timeline |
| Okta Inc |
| Capitania Securities |
Okta and Capitania Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and Capitania Securities
The main advantage of trading using opposite Okta and Capitania Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, Capitania Securities 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 Capitania Securities will offset losses from the drop in Capitania Securities' long position.The idea behind Okta Inc and Capitania Securities II 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.| Capitania Securities vs. Capitania Infra Fic | Capitania Securities vs. RB Capital Office | Capitania Securities vs. Ishares Msci Brazil | Capitania Securities vs. Investo Etf Global |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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