Correlation Between Oracle Financial and Foods Inns
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By analyzing existing cross correlation between Oracle Financial Services and Foods Inns Limited, you can compare the effects of market volatilities on Oracle Financial and Foods Inns 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 Oracle Financial with a short position of Foods Inns. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oracle Financial and Foods Inns.
Diversification Opportunities for Oracle Financial and Foods Inns
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Oracle and Foods is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Oracle Financial Services and Foods Inns Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foods Inns Limited and Oracle Financial 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 Oracle Financial Services are associated (or correlated) with Foods Inns. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foods Inns Limited has no effect on the direction of Oracle Financial i.e., Oracle Financial and Foods Inns go up and down completely randomly.
Pair Corralation between Oracle Financial and Foods Inns
Assuming the 90 days trading horizon Oracle Financial Services is expected to under-perform the Foods Inns. But the stock apears to be less risky and, when comparing its historical volatility, Oracle Financial Services is 2.35 times less risky than Foods Inns. The stock trades about -0.7 of its potential returns per unit of risk. The Foods Inns Limited is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 11,398 in Foods Inns Limited on October 31, 2024 and sell it today you would lose (857.00) from holding Foods Inns Limited or give up 7.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Oracle Financial Services vs. Foods Inns Limited
Performance |
| Timeline |
| Oracle Financial Services |
| Foods Inns Limited |
Oracle Financial and Foods Inns Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oracle Financial and Foods Inns
The main advantage of trading using opposite Oracle Financial and Foods Inns positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oracle Financial position performs unexpectedly, Foods Inns 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 Foods Inns will offset losses from the drop in Foods Inns' long position.| Oracle Financial vs. Garware Hi Tech Films | Oracle Financial vs. Hemisphere Properties India | Oracle Financial vs. Gallantt Ispat Limited | Oracle Financial vs. Bombay Burmah Trading |
| Foods Inns vs. Chalet Hotels Limited | Foods Inns vs. Radiant Cash Management | Foods Inns vs. UTI Asset Management | Foods Inns vs. Blue Coast Hotels |
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 CEOs Directory module to screen CEOs from public companies around the world.
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