Correlation Between Okta and MAP Aktif
Can any of the company-specific risk be diversified away by investing in both Okta and MAP Aktif 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 MAP Aktif into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okta Inc and MAP Aktif Adiperkasa, you can compare the effects of market volatilities on Okta and MAP Aktif 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 MAP Aktif. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and MAP Aktif.
Diversification Opportunities for Okta and MAP Aktif
Good diversification
The 3 months correlation between Okta and MAP is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and MAP Aktif Adiperkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAP Aktif Adiperkasa 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 MAP Aktif. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAP Aktif Adiperkasa has no effect on the direction of Okta i.e., Okta and MAP Aktif go up and down completely randomly.
Pair Corralation between Okta and MAP Aktif
Given the investment horizon of 90 days Okta Inc is expected to generate 0.58 times more return on investment than MAP Aktif. However, Okta Inc is 1.73 times less risky than MAP Aktif. It trades about 0.22 of its potential returns per unit of risk. MAP Aktif Adiperkasa is currently generating about -0.02 per unit of risk. If you would invest 7,189 in Okta Inc on September 1, 2024 and sell it today you would earn a total of 567.00 from holding Okta Inc or generate 7.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Okta Inc vs. MAP Aktif Adiperkasa
Performance |
| Timeline |
| Okta Inc |
| MAP Aktif Adiperkasa |
Okta and MAP Aktif Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and MAP Aktif
The main advantage of trading using opposite Okta and MAP Aktif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, MAP Aktif 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 MAP Aktif will offset losses from the drop in MAP Aktif's long position.The idea behind Okta Inc and MAP Aktif Adiperkasa 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.| MAP Aktif vs. Japfa Comfeed Indonesia | MAP Aktif vs. Charoen Pokphand Indonesia | MAP Aktif vs. Erajaya Swasembada Tbk | MAP Aktif vs. Indofood Cbp Sukses |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |