Correlation Between Oracle and Intai Technology
Can any of the company-specific risk be diversified away by investing in both Oracle and Intai Technology 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 Oracle and Intai Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oracle and Intai Technology, you can compare the effects of market volatilities on Oracle and Intai Technology 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 Intai Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oracle and Intai Technology.
Diversification Opportunities for Oracle and Intai Technology
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oracle and Intai is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Oracle and Intai Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intai Technology 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 Intai Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intai Technology has no effect on the direction of Oracle i.e., Oracle and Intai Technology go up and down completely randomly.
Pair Corralation between Oracle and Intai Technology
Given the investment horizon of 90 days Oracle is expected to generate 2.25 times more return on investment than Intai Technology. However, Oracle is 2.25 times more volatile than Intai Technology. It trades about 0.1 of its potential returns per unit of risk. Intai Technology is currently generating about -0.01 per unit of risk. If you would invest 11,224 in Oracle on September 3, 2024 and sell it today you would earn a total of 7,260 from holding Oracle or generate 64.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.98% |
| Values | Daily Returns |
Oracle vs. Intai Technology
Performance |
| Timeline |
| Oracle |
| Intai Technology |
Oracle and Intai Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oracle and Intai Technology
The main advantage of trading using opposite Oracle and Intai Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oracle position performs unexpectedly, Intai Technology 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 Intai Technology will offset losses from the drop in Intai Technology's long position.| Oracle vs. Palo Alto Networks | Oracle vs. Crowdstrike Holdings | Oracle vs. Microsoft | Oracle vs. Block Inc |
| Intai Technology vs. San Shing Fastech | Intai Technology vs. QST International | Intai Technology vs. WiseChip Semiconductor | Intai Technology vs. Novatek Microelectronics Corp |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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