Correlation Between Okta and Surya Biru
Can any of the company-specific risk be diversified away by investing in both Okta and Surya Biru 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 Surya Biru into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okta Inc and Surya Biru Murni, you can compare the effects of market volatilities on Okta and Surya Biru 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 Surya Biru. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and Surya Biru.
Diversification Opportunities for Okta and Surya Biru
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Okta and Surya is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and Surya Biru Murni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Biru Murni 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 Surya Biru. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Biru Murni has no effect on the direction of Okta i.e., Okta and Surya Biru go up and down completely randomly.
Pair Corralation between Okta and Surya Biru
Given the investment horizon of 90 days Okta Inc is expected to generate 1.17 times more return on investment than Surya Biru. However, Okta is 1.17 times more volatile than Surya Biru Murni. It trades about 0.11 of its potential returns per unit of risk. Surya Biru Murni is currently generating about -0.11 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 | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Okta Inc vs. Surya Biru Murni
Performance |
| Timeline |
| Okta Inc |
| Surya Biru Murni |
Okta and Surya Biru Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and Surya Biru
The main advantage of trading using opposite Okta and Surya Biru positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, Surya Biru 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 Surya Biru will offset losses from the drop in Surya Biru's long position.The idea behind Okta Inc and Surya Biru Murni 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.| Surya Biru vs. Indo Oil Perkasa | Surya Biru vs. Archi Indonesia Tbk | Surya Biru vs. Nusa Palapa Gemilang | Surya Biru vs. Obm Drilchem PT |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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