Correlation Between Okta and MAS Financial
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By analyzing existing cross correlation between Okta Inc and MAS Financial Services, you can compare the effects of market volatilities on Okta and MAS Financial 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 MAS Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and MAS Financial.
Diversification Opportunities for Okta and MAS Financial
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Okta and MAS is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and MAS Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAS Financial Services 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 MAS Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAS Financial Services has no effect on the direction of Okta i.e., Okta and MAS Financial go up and down completely randomly.
Pair Corralation between Okta and MAS Financial
Given the investment horizon of 90 days Okta Inc is expected to generate 0.85 times more return on investment than MAS Financial. However, Okta Inc is 1.18 times less risky than MAS Financial. It trades about 0.12 of its potential returns per unit of risk. MAS Financial Services is currently generating about -0.01 per unit of risk. If you would invest 7,325 in Okta Inc on August 28, 2024 and sell it today you would earn a total of 325.00 from holding Okta Inc or generate 4.44% 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. MAS Financial Services
Performance |
| Timeline |
| Okta Inc |
| MAS Financial Services |
Okta and MAS Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and MAS Financial
The main advantage of trading using opposite Okta and MAS Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, MAS Financial 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 MAS Financial will offset losses from the drop in MAS Financial's long position.The idea behind Okta Inc and MAS Financial Services 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.| MAS Financial vs. Reliance Industries Limited | MAS Financial vs. Life Insurance | MAS Financial vs. Indian Oil | MAS Financial vs. Oil Natural Gas |
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.
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