Correlation Between Okta and SBF 120
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By analyzing existing cross correlation between Okta Inc and SBF 120, you can compare the effects of market volatilities on Okta and SBF 120 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 SBF 120. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and SBF 120.
Diversification Opportunities for Okta and SBF 120
Average diversification
The 3 months correlation between Okta and SBF is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and SBF 120 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBF 120 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 SBF 120. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBF 120 has no effect on the direction of Okta i.e., Okta and SBF 120 go up and down completely randomly.
Pair Corralation between Okta and SBF 120
Given the investment horizon of 90 days Okta Inc is expected to generate 1.9 times more return on investment than SBF 120. However, Okta is 1.9 times more volatile than SBF 120. It trades about 0.11 of its potential returns per unit of risk. SBF 120 is currently generating about -0.21 per unit of risk. If you would invest 7,381 in Okta Inc on August 30, 2024 and sell it today you would earn a total of 302.00 from holding Okta Inc or generate 4.09% 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. SBF 120
Performance |
| Timeline |
Okta and SBF 120 Volatility Contrast
Predicted Return Density |
| Returns |
Okta Inc
Pair trading matchups for Okta
SBF 120
Pair trading matchups for SBF 120
Pair Trading with Okta and SBF 120
The main advantage of trading using opposite Okta and SBF 120 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, SBF 120 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 SBF 120 will offset losses from the drop in SBF 120's long position.The idea behind Okta Inc and SBF 120 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.| SBF 120 vs. Novatech Industries SA | SBF 120 vs. FNP Technologies SA | SBF 120 vs. Impulse Fitness Solutions | SBF 120 vs. Union Technologies Informatique |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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