Correlation Between Okta and Nuveen Symphony
Can any of the company-specific risk be diversified away by investing in both Okta and Nuveen Symphony 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 Nuveen Symphony into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okta Inc and Nuveen Symphony Floating, you can compare the effects of market volatilities on Okta and Nuveen Symphony 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 Nuveen Symphony. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and Nuveen Symphony.
Diversification Opportunities for Okta and Nuveen Symphony
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Okta and Nuveen is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and Nuveen Symphony Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Symphony Floating 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 Nuveen Symphony. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Symphony Floating has no effect on the direction of Okta i.e., Okta and Nuveen Symphony go up and down completely randomly.
Pair Corralation between Okta and Nuveen Symphony
Given the investment horizon of 90 days Okta Inc is expected to generate 17.65 times more return on investment than Nuveen Symphony. However, Okta is 17.65 times more volatile than Nuveen Symphony Floating. It trades about 0.03 of its potential returns per unit of risk. Nuveen Symphony Floating is currently generating about 0.21 per unit of risk. If you would invest 6,442 in Okta Inc on August 30, 2024 and sell it today you would earn a total of 1,200 from holding Okta Inc or generate 18.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Okta Inc vs. Nuveen Symphony Floating
Performance |
| Timeline |
| Okta Inc |
| Nuveen Symphony Floating |
Okta and Nuveen Symphony Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and Nuveen Symphony
The main advantage of trading using opposite Okta and Nuveen Symphony positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, Nuveen Symphony 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 Nuveen Symphony will offset losses from the drop in Nuveen Symphony's long position.The idea behind Okta Inc and Nuveen Symphony Floating 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.| Nuveen Symphony vs. Nuveen Symphony Floating | Nuveen Symphony vs. Nuveen Symphony Floating | Nuveen Symphony vs. Nuveen Symphony Floating |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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