Correlation Between Okta and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both Okta and Segall Bryant 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 Segall Bryant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okta Inc and Segall Bryant Hamill, you can compare the effects of market volatilities on Okta and Segall Bryant 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 Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and Segall Bryant.
Diversification Opportunities for Okta and Segall Bryant
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Okta and Segall is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and Segall Bryant Hamill in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Segall Bryant Hamill 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 Segall Bryant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Segall Bryant Hamill has no effect on the direction of Okta i.e., Okta and Segall Bryant go up and down completely randomly.
Pair Corralation between Okta and Segall Bryant
Given the investment horizon of 90 days Okta Inc is expected to generate 2.4 times more return on investment than Segall Bryant. However, Okta is 2.4 times more volatile than Segall Bryant Hamill. It trades about 0.22 of its potential returns per unit of risk. Segall Bryant Hamill is currently generating about 0.37 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 Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Okta Inc vs. Segall Bryant Hamill
Performance |
| Timeline |
| Okta Inc |
| Segall Bryant Hamill |
Okta and Segall Bryant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and Segall Bryant
The main advantage of trading using opposite Okta and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, Segall Bryant 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 Segall Bryant will offset losses from the drop in Segall Bryant's long position.The idea behind Okta Inc and Segall Bryant Hamill 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.| Segall Bryant vs. Old Westbury Large | Segall Bryant vs. T Rowe Price | Segall Bryant vs. T Rowe Price | Segall Bryant vs. Federated Kaufmann Large |
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 Stocks Directory module to find actively traded stocks across global markets.
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