Correlation Between Oracle and Astrana Health
Can any of the company-specific risk be diversified away by investing in both Oracle and Astrana Health 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 Astrana Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oracle and Astrana Health, you can compare the effects of market volatilities on Oracle and Astrana Health 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 Astrana Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oracle and Astrana Health.
Diversification Opportunities for Oracle and Astrana Health
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oracle and Astrana is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Oracle and Astrana Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astrana Health 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 Astrana Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astrana Health has no effect on the direction of Oracle i.e., Oracle and Astrana Health go up and down completely randomly.
Pair Corralation between Oracle and Astrana Health
Given the investment horizon of 90 days Oracle is expected to generate 0.73 times more return on investment than Astrana Health. However, Oracle is 1.37 times less risky than Astrana Health. It trades about 0.1 of its potential returns per unit of risk. Astrana Health is currently generating about 0.05 per unit of risk. If you would invest 11,374 in Oracle on September 4, 2024 and sell it today you would earn a total of 6,915 from holding Oracle or generate 60.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oracle vs. Astrana Health
Performance |
| Timeline |
| Oracle |
| Astrana Health |
Oracle and Astrana Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oracle and Astrana Health
The main advantage of trading using opposite Oracle and Astrana Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oracle position performs unexpectedly, Astrana Health 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 Astrana Health will offset losses from the drop in Astrana Health's long position.| Oracle vs. Palo Alto Networks | Oracle vs. Crowdstrike Holdings | Oracle vs. Microsoft | Oracle vs. Block Inc |
| Astrana Health vs. Turning Point Brands | Astrana Health vs. Altria Group | Astrana Health vs. Willamette Valley Vineyards | Astrana Health vs. Accel Entertainment |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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