Correlation Between Oracle and Shin Hai
Can any of the company-specific risk be diversified away by investing in both Oracle and Shin Hai 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 Shin Hai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oracle and Shin Hai Gas, you can compare the effects of market volatilities on Oracle and Shin Hai 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 Shin Hai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oracle and Shin Hai.
Diversification Opportunities for Oracle and Shin Hai
Excellent diversification
The 3 months correlation between Oracle and Shin is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Oracle and Shin Hai Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shin Hai Gas 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 Shin Hai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shin Hai Gas has no effect on the direction of Oracle i.e., Oracle and Shin Hai go up and down completely randomly.
Pair Corralation between Oracle and Shin Hai
Given the investment horizon of 90 days Oracle is expected to generate 2.59 times more return on investment than Shin Hai. However, Oracle is 2.59 times more volatile than Shin Hai Gas. It trades about 0.1 of its potential returns per unit of risk. Shin Hai Gas is currently generating about -0.02 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 | Very Weak |
| Accuracy | 97.98% |
| Values | Daily Returns |
Oracle vs. Shin Hai Gas
Performance |
| Timeline |
| Oracle |
| Shin Hai Gas |
Oracle and Shin Hai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oracle and Shin Hai
The main advantage of trading using opposite Oracle and Shin Hai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oracle position performs unexpectedly, Shin Hai 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 Shin Hai will offset losses from the drop in Shin Hai's long position.| Oracle vs. Palo Alto Networks | Oracle vs. Crowdstrike Holdings | Oracle vs. Microsoft | Oracle vs. Block Inc |
| Shin Hai vs. Taiwan Secom Co | Shin Hai vs. Taiwan Shin Kong | Shin Hai vs. Taiwan Cogeneration Corp | Shin Hai vs. Shin Shin Natural |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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