Correlation Between Okta and SPECTRA
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By analyzing existing cross correlation between Okta Inc and SPECTRA ENERGY PARTNERS, you can compare the effects of market volatilities on Okta and SPECTRA 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 SPECTRA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and SPECTRA.
Diversification Opportunities for Okta and SPECTRA
Very good diversification
The 3 months correlation between Okta and SPECTRA is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and SPECTRA ENERGY PARTNERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPECTRA ENERGY PARTNERS 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 SPECTRA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPECTRA ENERGY PARTNERS has no effect on the direction of Okta i.e., Okta and SPECTRA go up and down completely randomly.
Pair Corralation between Okta and SPECTRA
Given the investment horizon of 90 days Okta Inc is expected to generate 7.04 times more return on investment than SPECTRA. However, Okta is 7.04 times more volatile than SPECTRA ENERGY PARTNERS. It trades about 0.14 of its potential returns per unit of risk. SPECTRA ENERGY PARTNERS is currently generating about -0.17 per unit of risk. If you would invest 8,437 in Okta Inc on December 11, 2024 and sell it today you would earn a total of 2,082 from holding Okta Inc or generate 24.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 77.5% |
| Values | Daily Returns |
Okta Inc vs. SPECTRA ENERGY PARTNERS
Performance |
| Timeline |
| Okta Inc |
| SPECTRA ENERGY PARTNERS |
Okta and SPECTRA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and SPECTRA
The main advantage of trading using opposite Okta and SPECTRA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, SPECTRA 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 SPECTRA will offset losses from the drop in SPECTRA's long position.The idea behind Okta Inc and SPECTRA ENERGY PARTNERS 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.| SPECTRA vs. AEP TEX INC | SPECTRA vs. BlackBerry | SPECTRA vs. Star Diamond | SPECTRA vs. Grupo Aeroportuario del |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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