Correlation Between Okta and Fortescue
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By analyzing existing cross correlation between Okta Inc and Fortescue Metals Group, you can compare the effects of market volatilities on Okta and Fortescue 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 Fortescue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and Fortescue.
Diversification Opportunities for Okta and Fortescue
Very good diversification
The 3 months correlation between Okta and Fortescue is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and Fortescue Metals Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortescue Metals 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 Fortescue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortescue Metals has no effect on the direction of Okta i.e., Okta and Fortescue go up and down completely randomly.
Pair Corralation between Okta and Fortescue
Given the investment horizon of 90 days Okta Inc is expected to under-perform the Fortescue. In addition to that, Okta is 7.66 times more volatile than Fortescue Metals Group. It trades about -0.12 of its total potential returns per unit of risk. Fortescue Metals Group is currently generating about -0.14 per unit of volatility. If you would invest 9,696 in Fortescue Metals Group on August 28, 2024 and sell it today you would lose (264.00) from holding Fortescue Metals Group or give up 2.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Okta Inc vs. Fortescue Metals Group
Performance |
| Timeline |
| Okta Inc |
| Fortescue Metals |
Okta and Fortescue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and Fortescue
The main advantage of trading using opposite Okta and Fortescue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, Fortescue 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 Fortescue will offset losses from the drop in Fortescue's long position.The idea behind Okta Inc and Fortescue Metals Group 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.| Fortescue vs. Weyco Group | Fortescue vs. FitLife Brands, Common | Fortescue vs. National Beverage Corp | Fortescue vs. Beyond Meat |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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