Correlation Between Okta and VERIZON
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By analyzing existing cross correlation between Okta Inc and VERIZON MUNICATIONS INC, you can compare the effects of market volatilities on Okta and VERIZON 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 VERIZON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and VERIZON.
Diversification Opportunities for Okta and VERIZON
Pay attention - limited upside
The 3 months correlation between Okta and VERIZON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and VERIZON MUNICATIONS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VERIZON MUNICATIONS INC 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 VERIZON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VERIZON MUNICATIONS INC has no effect on the direction of Okta i.e., Okta and VERIZON go up and down completely randomly.
Pair Corralation between Okta and VERIZON
Given the investment horizon of 90 days Okta Inc is expected to generate 0.68 times more return on investment than VERIZON. However, Okta Inc is 1.46 times less risky than VERIZON. It trades about 0.15 of its potential returns per unit of risk. VERIZON MUNICATIONS INC is currently generating about -0.06 per unit of risk. If you would invest 7,240 in Okta Inc on August 31, 2024 and sell it today you would earn a total of 402.00 from holding Okta Inc or generate 5.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Okta Inc vs. VERIZON MUNICATIONS INC
Performance |
| Timeline |
| Okta Inc |
| VERIZON MUNICATIONS INC |
Okta and VERIZON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and VERIZON
The main advantage of trading using opposite Okta and VERIZON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, VERIZON 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 VERIZON will offset losses from the drop in VERIZON's long position.The idea behind Okta Inc and VERIZON MUNICATIONS INC 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.| VERIZON vs. Burlington Stores | VERIZON vs. Wabash National | VERIZON vs. U Power Limited | VERIZON vs. Adient PLC |
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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