Correlation Between Okta and CITIGROUP
Specify exactly 2 symbols:
By analyzing existing cross correlation between Okta Inc and CITIGROUP INC 585, you can compare the effects of market volatilities on Okta and CITIGROUP 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 CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and CITIGROUP.
Diversification Opportunities for Okta and CITIGROUP
Very good diversification
The 3 months correlation between Okta and CITIGROUP is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and CITIGROUP INC 585 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 585 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 CITIGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIGROUP INC 585 has no effect on the direction of Okta i.e., Okta and CITIGROUP go up and down completely randomly.
Pair Corralation between Okta and CITIGROUP
Given the investment horizon of 90 days Okta Inc is expected to generate 1.23 times more return on investment than CITIGROUP. However, Okta is 1.23 times more volatile than CITIGROUP INC 585. It trades about 0.16 of its potential returns per unit of risk. CITIGROUP INC 585 is currently generating about -0.05 per unit of risk. If you would invest 7,215 in Okta Inc on August 25, 2024 and sell it today you would earn a total of 442.00 from holding Okta Inc or generate 6.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 50.0% |
| Values | Daily Returns |
Okta Inc vs. CITIGROUP INC 585
Performance |
| Timeline |
| Okta Inc |
| CITIGROUP INC 585 |
Okta and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and CITIGROUP
The main advantage of trading using opposite Okta and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, CITIGROUP 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 CITIGROUP will offset losses from the drop in CITIGROUP's long position.The idea behind Okta Inc and CITIGROUP INC 585 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.| CITIGROUP vs. Ironveld Plc | CITIGROUP vs. Employers Holdings | CITIGROUP vs. NI Holdings | CITIGROUP vs. ICC Holdings |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |