Correlation Between Okta and Yapi Ve
Can any of the company-specific risk be diversified away by investing in both Okta and Yapi Ve 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 Yapi Ve into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okta Inc and Yapi ve Kredi, you can compare the effects of market volatilities on Okta and Yapi Ve 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 Yapi Ve. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and Yapi Ve.
Diversification Opportunities for Okta and Yapi Ve
Modest diversification
The 3 months correlation between Okta and Yapi is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and Yapi ve Kredi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yapi ve Kredi 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 Yapi Ve. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yapi ve Kredi has no effect on the direction of Okta i.e., Okta and Yapi Ve go up and down completely randomly.
Pair Corralation between Okta and Yapi Ve
Given the investment horizon of 90 days Okta is expected to generate 4.46 times less return on investment than Yapi Ve. But when comparing it to its historical volatility, Okta Inc is 1.01 times less risky than Yapi Ve. It trades about 0.02 of its potential returns per unit of risk. Yapi ve Kredi is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,271 in Yapi ve Kredi on August 28, 2024 and sell it today you would earn a total of 1,661 from holding Yapi ve Kredi or generate 130.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.44% |
| Values | Daily Returns |
Okta Inc vs. Yapi ve Kredi
Performance |
| Timeline |
| Okta Inc |
| Yapi ve Kredi |
Okta and Yapi Ve Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and Yapi Ve
The main advantage of trading using opposite Okta and Yapi Ve positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, Yapi Ve 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 Yapi Ve will offset losses from the drop in Yapi Ve's long position.The idea behind Okta Inc and Yapi ve Kredi 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.| Yapi Ve vs. Akbank TAS | Yapi Ve vs. Bms Birlesik Metal | Yapi Ve vs. Gentas Genel Metal | Yapi Ve vs. Turkish Airlines |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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