Correlation Between Okta and 693304AS6
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By analyzing existing cross correlation between Okta Inc and PECO ENERGY 415, you can compare the effects of market volatilities on Okta and 693304AS6 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 693304AS6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and 693304AS6.
Diversification Opportunities for Okta and 693304AS6
Very good diversification
The 3 months correlation between Okta and 693304AS6 is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and PECO ENERGY 415 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PECO ENERGY 415 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 693304AS6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PECO ENERGY 415 has no effect on the direction of Okta i.e., Okta and 693304AS6 go up and down completely randomly.
Pair Corralation between Okta and 693304AS6
Given the investment horizon of 90 days Okta is expected to generate 95.1 times less return on investment than 693304AS6. But when comparing it to its historical volatility, Okta Inc is 32.95 times less risky than 693304AS6. It trades about 0.03 of its potential returns per unit of risk. PECO ENERGY 415 is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 9,120 in PECO ENERGY 415 on August 28, 2024 and sell it today you would lose (379.00) from holding PECO ENERGY 415 or give up 4.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 44.65% |
| Values | Daily Returns |
Okta Inc vs. PECO ENERGY 415
Performance |
| Timeline |
| Okta Inc |
| PECO ENERGY 415 |
Okta and 693304AS6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and 693304AS6
The main advantage of trading using opposite Okta and 693304AS6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, 693304AS6 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 693304AS6 will offset losses from the drop in 693304AS6's long position.The idea behind Okta Inc and PECO ENERGY 415 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.| 693304AS6 vs. AEP TEX INC | 693304AS6 vs. US BANK NATIONAL | 693304AS6 vs. Dupont De Nemours | 693304AS6 vs. The Travelers Companies |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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