Correlation Between Okta and Lucky Core
Can any of the company-specific risk be diversified away by investing in both Okta and Lucky Core 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 Lucky Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okta Inc and Lucky Core Ind, you can compare the effects of market volatilities on Okta and Lucky Core 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 Lucky Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and Lucky Core.
Diversification Opportunities for Okta and Lucky Core
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Okta and Lucky is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and Lucky Core Ind in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lucky Core Ind 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 Lucky Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lucky Core Ind has no effect on the direction of Okta i.e., Okta and Lucky Core go up and down completely randomly.
Pair Corralation between Okta and Lucky Core
Given the investment horizon of 90 days Okta is expected to generate 4.34 times less return on investment than Lucky Core. In addition to that, Okta is 1.51 times more volatile than Lucky Core Ind. It trades about 0.02 of its total potential returns per unit of risk. Lucky Core Ind is currently generating about 0.12 per unit of volatility. If you would invest 52,784 in Lucky Core Ind on August 27, 2024 and sell it today you would earn a total of 63,086 from holding Lucky Core Ind or generate 119.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.46% |
| Values | Daily Returns |
Okta Inc vs. Lucky Core Ind
Performance |
| Timeline |
| Okta Inc |
| Lucky Core Ind |
Okta and Lucky Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and Lucky Core
The main advantage of trading using opposite Okta and Lucky Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, Lucky Core 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 Lucky Core will offset losses from the drop in Lucky Core's long position.The idea behind Okta Inc and Lucky Core Ind 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.| Lucky Core vs. Habib Insurance | Lucky Core vs. Century Insurance | Lucky Core vs. Reliance Weaving Mills | Lucky Core vs. Media Times |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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