Correlation Between Okta and GENERAL

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Okta and GENERAL at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Okta and GENERAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okta Inc and GENERAL ELEC CAP, you can compare the effects of market volatilities on Okta and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and GENERAL.

Diversification Opportunities for Okta and GENERAL

-0.45
  Correlation Coefficient

Very good diversification

The 3 months correlation between Okta and GENERAL is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and GENERAL ELEC CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL ELEC CAP 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL ELEC CAP has no effect on the direction of Okta i.e., Okta and GENERAL go up and down completely randomly.

Pair Corralation between Okta and GENERAL

Given the investment horizon of 90 days Okta Inc is expected to generate 1.99 times more return on investment than GENERAL. However, Okta is 1.99 times more volatile than GENERAL ELEC CAP. It trades about 0.25 of its potential returns per unit of risk. GENERAL ELEC CAP is currently generating about -0.05 per unit of risk. If you would invest  8,729  in Okta Inc on November 18, 2024 and sell it today you would earn a total of  900.00  from holding Okta Inc or generate 10.31% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy47.62%
ValuesDaily Returns

Okta Inc  vs.  GENERAL ELEC CAP

 Performance 
       Timeline  
Okta Inc 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Okta Inc are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, Okta sustained solid returns over the last few months and may actually be approaching a breakup point.
GENERAL ELEC CAP 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days GENERAL ELEC CAP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, GENERAL is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Okta and GENERAL Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Okta and GENERAL

The main advantage of trading using opposite Okta and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.
Okta vs. Crowdstrike Holdings
Okta vs. Cloudflare
Okta vs. MongoDB
Okta vs. Palo Alto Networks
The idea behind Okta Inc and GENERAL ELEC CAP 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.
GENERAL vs. Ardelyx
GENERAL vs. Catalyst Pharmaceuticals
GENERAL vs. Alvotech
GENERAL vs. Spyre Therapeutics
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

Other Complementary Tools

Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
FinTech Suite
Use AI to screen and filter profitable investment opportunities


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY