Correlation Between Okta and C Mer
Can any of the company-specific risk be diversified away by investing in both Okta and C Mer 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 C Mer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okta Inc and C Mer Industries, you can compare the effects of market volatilities on Okta and C Mer 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 C Mer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okta and C Mer.
Diversification Opportunities for Okta and C Mer
Average diversification
The 3 months correlation between Okta and CMER is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Okta Inc and C Mer Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C Mer Industries 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 C Mer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C Mer Industries has no effect on the direction of Okta i.e., Okta and C Mer go up and down completely randomly.
Pair Corralation between Okta and C Mer
Given the investment horizon of 90 days Okta is expected to generate 6.69 times less return on investment than C Mer. But when comparing it to its historical volatility, Okta Inc is 1.01 times less risky than C Mer. It trades about 0.01 of its potential returns per unit of risk. C Mer Industries is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 67,100 in C Mer Industries on January 19, 2024 and sell it today you would earn a total of 61,400 from holding C Mer Industries or generate 91.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 79.15% |
| Values | Daily Returns |
Okta Inc vs. C Mer Industries
Performance |
| Timeline |
| Okta Inc |
| C Mer Industries |
Okta and C Mer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okta and C Mer
The main advantage of trading using opposite Okta and C Mer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okta position performs unexpectedly, C Mer 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 C Mer will offset losses from the drop in C Mer's long position.The idea behind Okta Inc and C Mer Industries 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.| C Mer vs. EN Shoham Business | C Mer vs. Accel Solutions Group | C Mer vs. Mivtach Shamir | C Mer vs. Rani Zim Shopping |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |