Correlation Between Okta and Sinclair
Specify exactly 2 symbols:
By analyzing existing cross correlation between Okta Inc and Sinclair Television Group, you can compare the effects of market volatilities on Okta and Sinclair 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 Sinclair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and Sinclair.
Diversification Opportunities for Okta and Sinclair
Poor diversification
The 3 months correlation between Okta and Sinclair is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and Sinclair Television Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinclair Television 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 Sinclair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinclair Television has no effect on the direction of Okta i.e., Okta and Sinclair go up and down completely randomly.
Pair Corralation between Okta and Sinclair
Given the investment horizon of 90 days Okta Inc is expected to generate 2.05 times more return on investment than Sinclair. However, Okta is 2.05 times more volatile than Sinclair Television Group. It trades about 0.04 of its potential returns per unit of risk. Sinclair Television Group is currently generating about 0.0 per unit of risk. If you would invest 7,129 in Okta Inc on November 19, 2024 and sell it today you would earn a total of 2,500 from holding Okta Inc or generate 35.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 59.27% |
| Values | Daily Returns |
Okta Inc vs. Sinclair Television Group
Performance |
| Timeline |
| Okta Inc |
| Sinclair Television |
Okta and Sinclair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and Sinclair
The main advantage of trading using opposite Okta and Sinclair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, Sinclair 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 Sinclair will offset losses from the drop in Sinclair's long position.The idea behind Okta Inc and Sinclair Television 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.| Sinclair vs. Exchange Bank | Sinclair vs. SEI Investments | Sinclair vs. Hudson Technologies | Sinclair vs. Lululemon Athletica |
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
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |