Correlation Between Okta and BOEING
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By analyzing existing cross correlation between Okta Inc and BOEING CO, you can compare the effects of market volatilities on Okta and BOEING 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 BOEING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and BOEING.
Diversification Opportunities for Okta and BOEING
Average diversification
The 3 months correlation between Okta and BOEING is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and BOEING CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOEING CO 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 BOEING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOEING CO has no effect on the direction of Okta i.e., Okta and BOEING go up and down completely randomly.
Pair Corralation between Okta and BOEING
Given the investment horizon of 90 days Okta Inc is expected to generate 3.64 times more return on investment than BOEING. However, Okta is 3.64 times more volatile than BOEING CO. It trades about 0.13 of its potential returns per unit of risk. BOEING CO is currently generating about -0.13 per unit of risk. If you would invest 7,325 in Okta Inc on August 29, 2024 and sell it today you would earn a total of 358.00 from holding Okta Inc or generate 4.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Okta Inc vs. BOEING CO
Performance |
| Timeline |
| Okta Inc |
| BOEING CO |
Okta and BOEING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and BOEING
The main advantage of trading using opposite Okta and BOEING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, BOEING 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 BOEING will offset losses from the drop in BOEING's long position.The idea behind Okta Inc and BOEING CO 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.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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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