Correlation Between Oracle and Agfa-Gevaert
Can any of the company-specific risk be diversified away by investing in both Oracle and Agfa-Gevaert 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 Agfa-Gevaert into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oracle and Agfa Gevaert NV, you can compare the effects of market volatilities on Oracle and Agfa-Gevaert 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 Agfa-Gevaert. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oracle and Agfa-Gevaert.
Diversification Opportunities for Oracle and Agfa-Gevaert
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oracle and Agfa-Gevaert is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Oracle and Agfa Gevaert NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agfa Gevaert NV 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 Agfa-Gevaert. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agfa Gevaert NV has no effect on the direction of Oracle i.e., Oracle and Agfa-Gevaert go up and down completely randomly.
Pair Corralation between Oracle and Agfa-Gevaert
Given the investment horizon of 90 days Oracle is expected to generate 0.43 times more return on investment than Agfa-Gevaert. However, Oracle is 2.31 times less risky than Agfa-Gevaert. It trades about 0.19 of its potential returns per unit of risk. Agfa Gevaert NV is currently generating about -0.15 per unit of risk. If you would invest 14,043 in Oracle on September 4, 2024 and sell it today you would earn a total of 4,098 from holding Oracle or generate 29.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oracle vs. Agfa Gevaert NV
Performance |
| Timeline |
| Oracle |
| Agfa Gevaert NV |
Oracle and Agfa-Gevaert Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oracle and Agfa-Gevaert
The main advantage of trading using opposite Oracle and Agfa-Gevaert positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oracle position performs unexpectedly, Agfa-Gevaert 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 Agfa-Gevaert will offset losses from the drop in Agfa-Gevaert's long position.| Oracle vs. Palo Alto Networks | Oracle vs. Crowdstrike Holdings | Oracle vs. Microsoft | Oracle vs. Block Inc |
| Agfa-Gevaert vs. Apple Inc | Agfa-Gevaert vs. Microsoft | Agfa-Gevaert vs. Amazon Inc | Agfa-Gevaert vs. Alphabet Inc Class C |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |