Correlation Between Okta and Calibre Mining
Can any of the company-specific risk be diversified away by investing in both Okta and Calibre Mining 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 Calibre Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okta Inc and Calibre Mining Corp, you can compare the effects of market volatilities on Okta and Calibre Mining 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 Calibre Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and Calibre Mining.
Diversification Opportunities for Okta and Calibre Mining
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Okta and Calibre is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and Calibre Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calibre Mining Corp 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 Calibre Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calibre Mining Corp has no effect on the direction of Okta i.e., Okta and Calibre Mining go up and down completely randomly.
Pair Corralation between Okta and Calibre Mining
Given the investment horizon of 90 days Okta Inc is expected to generate 0.65 times more return on investment than Calibre Mining. However, Okta Inc is 1.54 times less risky than Calibre Mining. It trades about 0.06 of its potential returns per unit of risk. Calibre Mining Corp is currently generating about -0.06 per unit of risk. If you would invest 7,399 in Okta Inc on August 28, 2024 and sell it today you would earn a total of 284.00 from holding Okta Inc or generate 3.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Okta Inc vs. Calibre Mining Corp
Performance |
| Timeline |
| Okta Inc |
| Calibre Mining Corp |
Okta and Calibre Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and Calibre Mining
The main advantage of trading using opposite Okta and Calibre Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, Calibre Mining 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 Calibre Mining will offset losses from the drop in Calibre Mining's long position.The idea behind Okta Inc and Calibre Mining Corp 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.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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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