Correlation Between Okta and IHUNT TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both Okta and IHUNT TECHNOLOGY 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 IHUNT TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okta Inc and IHUNT TECHNOLOGY IMPORT EXPORT, you can compare the effects of market volatilities on Okta and IHUNT TECHNOLOGY 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 IHUNT TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and IHUNT TECHNOLOGY.
Diversification Opportunities for Okta and IHUNT TECHNOLOGY
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Okta and IHUNT is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and IHUNT TECHNOLOGY IMPORT EXPORT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IHUNT TECHNOLOGY IMPORT 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 IHUNT TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IHUNT TECHNOLOGY IMPORT has no effect on the direction of Okta i.e., Okta and IHUNT TECHNOLOGY go up and down completely randomly.
Pair Corralation between Okta and IHUNT TECHNOLOGY
Given the investment horizon of 90 days Okta Inc is expected to generate 0.68 times more return on investment than IHUNT TECHNOLOGY. However, Okta Inc is 1.46 times less risky than IHUNT TECHNOLOGY. It trades about 0.13 of its potential returns per unit of risk. IHUNT TECHNOLOGY IMPORT EXPORT is currently generating about -0.07 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Okta Inc vs. IHUNT TECHNOLOGY IMPORT EXPORT
Performance |
| Timeline |
| Okta Inc |
| IHUNT TECHNOLOGY IMPORT |
Okta and IHUNT TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and IHUNT TECHNOLOGY
The main advantage of trading using opposite Okta and IHUNT TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, IHUNT TECHNOLOGY 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 IHUNT TECHNOLOGY will offset losses from the drop in IHUNT TECHNOLOGY's long position.The idea behind Okta Inc and IHUNT TECHNOLOGY IMPORT EXPORT 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.| IHUNT TECHNOLOGY vs. Bermas SA | IHUNT TECHNOLOGY vs. Remarul 16 Februarie | IHUNT TECHNOLOGY vs. Norofert SA | IHUNT TECHNOLOGY vs. Biofarm Bucure |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |