Correlation Between Okta and EXPEDIA
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By analyzing existing cross correlation between Okta Inc and EXPEDIA GROUP INC, you can compare the effects of market volatilities on Okta and EXPEDIA 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 EXPEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and EXPEDIA.
Diversification Opportunities for Okta and EXPEDIA
Significant diversification
The 3 months correlation between Okta and EXPEDIA is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and EXPEDIA GROUP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXPEDIA GROUP INC 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 EXPEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXPEDIA GROUP INC has no effect on the direction of Okta i.e., Okta and EXPEDIA go up and down completely randomly.
Pair Corralation between Okta and EXPEDIA
Given the investment horizon of 90 days Okta Inc is expected to generate 12.98 times more return on investment than EXPEDIA. However, Okta is 12.98 times more volatile than EXPEDIA GROUP INC. It trades about 0.19 of its potential returns per unit of risk. EXPEDIA GROUP INC is currently generating about -0.1 per unit of risk. If you would invest 7,240 in Okta Inc on August 31, 2024 and sell it today you would earn a total of 516.00 from holding Okta Inc or generate 7.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 56.52% |
| Values | Daily Returns |
Okta Inc vs. EXPEDIA GROUP INC
Performance |
| Timeline |
| Okta Inc |
| EXPEDIA GROUP INC |
Okta and EXPEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and EXPEDIA
The main advantage of trading using opposite Okta and EXPEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, EXPEDIA 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 EXPEDIA will offset losses from the drop in EXPEDIA's long position.The idea behind Okta Inc and EXPEDIA GROUP INC 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.| EXPEDIA vs. AEP TEX INC | EXPEDIA vs. US BANK NATIONAL | EXPEDIA vs. Bank of America | EXPEDIA vs. GE Aerospace |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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