Correlation Between Okta and GivBux
Can any of the company-specific risk be diversified away by investing in both Okta and GivBux 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 GivBux into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okta Inc and GivBux Inc, you can compare the effects of market volatilities on Okta and GivBux 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 GivBux. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and GivBux.
Diversification Opportunities for Okta and GivBux
Good diversification
The 3 months correlation between Okta and GivBux is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and GivBux Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GivBux Inc 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 GivBux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GivBux Inc has no effect on the direction of Okta i.e., Okta and GivBux go up and down completely randomly.
Pair Corralation between Okta and GivBux
Given the investment horizon of 90 days Okta is expected to generate 17.81 times less return on investment than GivBux. But when comparing it to its historical volatility, Okta Inc is 6.64 times less risky than GivBux. It trades about 0.02 of its potential returns per unit of risk. GivBux Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 233.00 in GivBux Inc on August 28, 2024 and sell it today you would lose (160.00) from holding GivBux Inc or give up 68.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Okta Inc vs. GivBux Inc
Performance |
| Timeline |
| Okta Inc |
| GivBux Inc |
Okta and GivBux Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and GivBux
The main advantage of trading using opposite Okta and GivBux positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, GivBux 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 GivBux will offset losses from the drop in GivBux's long position.The idea behind Okta Inc and GivBux Inc 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |