Correlation Between Okta and Voya Solution
Can any of the company-specific risk be diversified away by investing in both Okta and Voya Solution 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 Voya Solution into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okta Inc and Voya Solution 2060, you can compare the effects of market volatilities on Okta and Voya Solution 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 Voya Solution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and Voya Solution.
Diversification Opportunities for Okta and Voya Solution
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Okta and Voya is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and Voya Solution 2060 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Solution 2060 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 Voya Solution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Solution 2060 has no effect on the direction of Okta i.e., Okta and Voya Solution go up and down completely randomly.
Pair Corralation between Okta and Voya Solution
Given the investment horizon of 90 days Okta Inc is expected to generate 3.04 times more return on investment than Voya Solution. However, Okta is 3.04 times more volatile than Voya Solution 2060. It trades about 0.22 of its potential returns per unit of risk. Voya Solution 2060 is currently generating about 0.34 per unit of risk. If you would invest 7,189 in Okta Inc on September 1, 2024 and sell it today you would earn a total of 567.00 from holding Okta Inc or generate 7.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Okta Inc vs. Voya Solution 2060
Performance |
| Timeline |
| Okta Inc |
| Voya Solution 2060 |
Okta and Voya Solution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and Voya Solution
The main advantage of trading using opposite Okta and Voya Solution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, Voya Solution 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 Voya Solution will offset losses from the drop in Voya Solution's long position.The idea behind Okta Inc and Voya Solution 2060 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.| Voya Solution vs. Voya Bond Index | Voya Solution vs. Voya Bond Index | Voya Solution vs. Voya Limited Maturity | Voya Solution vs. Voya Limited Maturity |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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