Correlation Between Okta and 26442CBH6
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By analyzing existing cross correlation between Okta Inc and DUK 355 15 MAR 52, you can compare the effects of market volatilities on Okta and 26442CBH6 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 26442CBH6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and 26442CBH6.
Diversification Opportunities for Okta and 26442CBH6
Good diversification
The 3 months correlation between Okta and 26442CBH6 is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and DUK 355 15 MAR 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DUK 355 15 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 26442CBH6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DUK 355 15 has no effect on the direction of Okta i.e., Okta and 26442CBH6 go up and down completely randomly.
Pair Corralation between Okta and 26442CBH6
Given the investment horizon of 90 days Okta Inc is expected to generate 1.57 times more return on investment than 26442CBH6. However, Okta is 1.57 times more volatile than DUK 355 15 MAR 52. It trades about 0.03 of its potential returns per unit of risk. DUK 355 15 MAR 52 is currently generating about -0.01 per unit of risk. If you would invest 6,442 in Okta Inc on August 30, 2024 and sell it today you would earn a total of 1,241 from holding Okta Inc or generate 19.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 74.14% |
| Values | Daily Returns |
Okta Inc vs. DUK 355 15 MAR 52
Performance |
| Timeline |
| Okta Inc |
| DUK 355 15 |
Okta and 26442CBH6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and 26442CBH6
The main advantage of trading using opposite Okta and 26442CBH6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, 26442CBH6 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 26442CBH6 will offset losses from the drop in 26442CBH6's long position.The idea behind Okta Inc and DUK 355 15 MAR 52 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.| 26442CBH6 vs. Monster Beverage Corp | 26442CBH6 vs. Boston Beer | 26442CBH6 vs. National Beverage Corp | 26442CBH6 vs. Fomento Economico Mexicano |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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