Correlation Between Oracle and Akva
Can any of the company-specific risk be diversified away by investing in both Oracle and Akva 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 Akva into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oracle and Akva Group, you can compare the effects of market volatilities on Oracle and Akva 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 Akva. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oracle and Akva.
Diversification Opportunities for Oracle and Akva
Very weak diversification
The 3 months correlation between Oracle and Akva is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Oracle and Akva Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akva Group 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 Akva. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akva Group has no effect on the direction of Oracle i.e., Oracle and Akva go up and down completely randomly.
Pair Corralation between Oracle and Akva
Given the investment horizon of 90 days Oracle is expected to generate 1.0 times more return on investment than Akva. However, Oracle is 1.0 times more volatile than Akva Group. It trades about 0.16 of its potential returns per unit of risk. Akva Group is currently generating about 0.03 per unit of risk. If you would invest 11,774 in Oracle on September 3, 2024 and sell it today you would earn a total of 6,710 from holding Oracle or generate 56.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.65% |
| Values | Daily Returns |
Oracle vs. Akva Group
Performance |
| Timeline |
| Oracle |
| Akva Group |
Oracle and Akva Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oracle and Akva
The main advantage of trading using opposite Oracle and Akva positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oracle position performs unexpectedly, Akva 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 Akva will offset losses from the drop in Akva's long position.| Oracle vs. Palo Alto Networks | Oracle vs. Crowdstrike Holdings | Oracle vs. Microsoft | Oracle vs. Block Inc |
| Akva vs. Austevoll Seafood ASA | Akva vs. Grieg Seafood ASA | Akva vs. Lery Seafood Group | Akva vs. SalMar ASA |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |