Correlation Between Oracle and Eminent Luggage
Can any of the company-specific risk be diversified away by investing in both Oracle and Eminent Luggage 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 Eminent Luggage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oracle and Eminent Luggage, you can compare the effects of market volatilities on Oracle and Eminent Luggage 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 Eminent Luggage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oracle and Eminent Luggage.
Diversification Opportunities for Oracle and Eminent Luggage
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oracle and Eminent is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Oracle and Eminent Luggage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eminent Luggage 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 Eminent Luggage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eminent Luggage has no effect on the direction of Oracle i.e., Oracle and Eminent Luggage go up and down completely randomly.
Pair Corralation between Oracle and Eminent Luggage
Given the investment horizon of 90 days Oracle is expected to generate 0.63 times more return on investment than Eminent Luggage. However, Oracle is 1.57 times less risky than Eminent Luggage. It trades about 0.1 of its potential returns per unit of risk. Eminent Luggage is currently generating about 0.03 per unit of risk. If you would invest 7,839 in Oracle on September 3, 2024 and sell it today you would earn a total of 10,645 from holding Oracle or generate 135.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.97% |
| Values | Daily Returns |
Oracle vs. Eminent Luggage
Performance |
| Timeline |
| Oracle |
| Eminent Luggage |
Oracle and Eminent Luggage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oracle and Eminent Luggage
The main advantage of trading using opposite Oracle and Eminent Luggage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oracle position performs unexpectedly, Eminent Luggage 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 Eminent Luggage will offset losses from the drop in Eminent Luggage's long position.| Oracle vs. Palo Alto Networks | Oracle vs. Crowdstrike Holdings | Oracle vs. Microsoft | Oracle vs. Block Inc |
| Eminent Luggage vs. Feng Tay Enterprises | Eminent Luggage vs. Pou Chen Corp | Eminent Luggage vs. Hsinli Chemical Industrial |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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