Correlation Between Okta and Guna Timur
Can any of the company-specific risk be diversified away by investing in both Okta and Guna Timur 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 Guna Timur into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okta Inc and Guna Timur Raya, you can compare the effects of market volatilities on Okta and Guna Timur 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 Guna Timur. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and Guna Timur.
Diversification Opportunities for Okta and Guna Timur
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Okta and Guna is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and Guna Timur Raya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guna Timur Raya 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 Guna Timur. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guna Timur Raya has no effect on the direction of Okta i.e., Okta and Guna Timur go up and down completely randomly.
Pair Corralation between Okta and Guna Timur
Given the investment horizon of 90 days Okta Inc is expected to generate 0.8 times more return on investment than Guna Timur. However, Okta Inc is 1.26 times less risky than Guna Timur. It trades about 0.02 of its potential returns per unit of risk. Guna Timur Raya is currently generating about 0.01 per unit of risk. If you would invest 7,145 in Okta Inc on August 31, 2024 and sell it today you would earn a total of 611.00 from holding Okta Inc or generate 8.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.72% |
| Values | Daily Returns |
Okta Inc vs. Guna Timur Raya
Performance |
| Timeline |
| Okta Inc |
| Guna Timur Raya |
Okta and Guna Timur Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and Guna Timur
The main advantage of trading using opposite Okta and Guna Timur positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, Guna Timur 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 Guna Timur will offset losses from the drop in Guna Timur's long position.The idea behind Okta Inc and Guna Timur Raya 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.| Guna Timur vs. Sriwahana | Guna Timur vs. PT Trimuda Nuansa | Guna Timur vs. Yelooo Integra Datanet | Guna Timur vs. Transcoal Pacific Tbk |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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