Correlation Between Okta and Viva Leisure
Can any of the company-specific risk be diversified away by investing in both Okta and Viva Leisure 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 Viva Leisure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okta Inc and Viva Leisure, you can compare the effects of market volatilities on Okta and Viva Leisure 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 Viva Leisure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and Viva Leisure.
Diversification Opportunities for Okta and Viva Leisure
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Okta and Viva is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and Viva Leisure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viva Leisure 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 Viva Leisure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viva Leisure has no effect on the direction of Okta i.e., Okta and Viva Leisure go up and down completely randomly.
Pair Corralation between Okta and Viva Leisure
Given the investment horizon of 90 days Okta Inc is expected to under-perform the Viva Leisure. In addition to that, Okta is 1.27 times more volatile than Viva Leisure. It trades about -0.11 of its total potential returns per unit of risk. Viva Leisure is currently generating about 0.09 per unit of volatility. If you would invest 118.00 in Viva Leisure on January 13, 2025 and sell it today you would earn a total of 6.00 from holding Viva Leisure or generate 5.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Okta Inc vs. Viva Leisure
Performance |
| Timeline |
| Okta Inc |
| Viva Leisure |
Okta and Viva Leisure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and Viva Leisure
The main advantage of trading using opposite Okta and Viva Leisure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, Viva Leisure 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 Viva Leisure will offset losses from the drop in Viva Leisure's long position.The idea behind Okta Inc and Viva Leisure 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.| Viva Leisure vs. Carawine Resources Limited | Viva Leisure vs. A1 Investments Resources | Viva Leisure vs. Commonwealth Bank of | Viva Leisure vs. Insurance Australia Group |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| CEOs Directory Screen CEOs from public companies around the world |