Correlation Between Oracle and Beijing Lier
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By analyzing existing cross correlation between Oracle and Beijing Lier High, you can compare the effects of market volatilities on Oracle and Beijing Lier 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 with a short position of Beijing Lier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oracle and Beijing Lier.
Diversification Opportunities for Oracle and Beijing Lier
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Oracle and Beijing is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Oracle and Beijing Lier High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Lier High and Oracle 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 are associated (or correlated) with Beijing Lier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Lier High has no effect on the direction of Oracle i.e., Oracle and Beijing Lier go up and down completely randomly.
Pair Corralation between Oracle and Beijing Lier
Given the investment horizon of 90 days Oracle is expected to generate 0.79 times more return on investment than Beijing Lier. However, Oracle is 1.27 times less risky than Beijing Lier. It trades about 0.16 of its potential returns per unit of risk. Beijing Lier High is currently generating about 0.11 per unit of risk. If you would invest 12,201 in Oracle on September 3, 2024 and sell it today you would earn a total of 6,283 from holding Oracle or generate 51.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 96.8% |
| Values | Daily Returns |
Oracle vs. Beijing Lier High
Performance |
| Timeline |
| Oracle |
| Beijing Lier High |
Oracle and Beijing Lier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oracle and Beijing Lier
The main advantage of trading using opposite Oracle and Beijing Lier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oracle position performs unexpectedly, Beijing Lier 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 Beijing Lier will offset losses from the drop in Beijing Lier's long position.| Oracle vs. Palo Alto Networks | Oracle vs. Crowdstrike Holdings | Oracle vs. Microsoft | Oracle vs. Block Inc |
| Beijing Lier vs. Maoming Petro Chemical Shihua | Beijing Lier vs. Yili Chuanning Biotechnology | Beijing Lier vs. Dymatic Chemicals | Beijing Lier vs. Hubei Dinglong Chemical |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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