Correlation Between Oracle and Bny Mellon
Can any of the company-specific risk be diversified away by investing in both Oracle and Bny Mellon 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 Bny Mellon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oracle and Bny Mellon Insight, you can compare the effects of market volatilities on Oracle and Bny Mellon 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 Bny Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oracle and Bny Mellon.
Diversification Opportunities for Oracle and Bny Mellon
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oracle and Bny is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Oracle and Bny Mellon Insight in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bny Mellon Insight 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 Bny Mellon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bny Mellon Insight has no effect on the direction of Oracle i.e., Oracle and Bny Mellon go up and down completely randomly.
Pair Corralation between Oracle and Bny Mellon
Given the investment horizon of 90 days Oracle is expected to generate 6.27 times more return on investment than Bny Mellon. However, Oracle is 6.27 times more volatile than Bny Mellon Insight. It trades about 0.17 of its potential returns per unit of risk. Bny Mellon Insight is currently generating about 0.13 per unit of risk. If you would invest 16,959 in Oracle on September 4, 2024 and sell it today you would earn a total of 1,182 from holding Oracle or generate 6.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oracle vs. Bny Mellon Insight
Performance |
| Timeline |
| Oracle |
| Bny Mellon Insight |
Oracle and Bny Mellon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oracle and Bny Mellon
The main advantage of trading using opposite Oracle and Bny Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oracle position performs unexpectedly, Bny Mellon 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 Bny Mellon will offset losses from the drop in Bny Mellon's long position.| Oracle vs. Palo Alto Networks | Oracle vs. Crowdstrike Holdings | Oracle vs. Microsoft | Oracle vs. Block Inc |
| Bny Mellon vs. Dreyfusstandish Global Fixed | Bny Mellon vs. Dreyfusstandish Global Fixed | Bny Mellon vs. Dreyfus High Yield | Bny Mellon vs. Dreyfus High Yield |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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