Correlation Between Oracle and Bilfinger
Can any of the company-specific risk be diversified away by investing in both Oracle and Bilfinger 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 Bilfinger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oracle and Bilfinger SE, you can compare the effects of market volatilities on Oracle and Bilfinger 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 Bilfinger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oracle and Bilfinger.
Diversification Opportunities for Oracle and Bilfinger
Very good diversification
The 3 months correlation between Oracle and Bilfinger is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Oracle and Bilfinger SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bilfinger SE 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 Bilfinger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bilfinger SE has no effect on the direction of Oracle i.e., Oracle and Bilfinger go up and down completely randomly.
Pair Corralation between Oracle and Bilfinger
Given the investment horizon of 90 days Oracle is expected to under-perform the Bilfinger. In addition to that, Oracle is 1.19 times more volatile than Bilfinger SE. It trades about -0.12 of its total potential returns per unit of risk. Bilfinger SE is currently generating about 0.07 per unit of volatility. If you would invest 4,635 in Bilfinger SE on September 12, 2024 and sell it today you would earn a total of 130.00 from holding Bilfinger SE or generate 2.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Oracle vs. Bilfinger SE
Performance |
| Timeline |
| Oracle |
| Bilfinger SE |
Oracle and Bilfinger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oracle and Bilfinger
The main advantage of trading using opposite Oracle and Bilfinger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oracle position performs unexpectedly, Bilfinger 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 Bilfinger will offset losses from the drop in Bilfinger's long position.| Oracle vs. Palo Alto Networks | Oracle vs. Crowdstrike Holdings | Oracle vs. Microsoft | Oracle vs. Block Inc |
| Bilfinger vs. BOSTON BEER A | Bilfinger vs. United Breweries Co | Bilfinger vs. MagnaChip Semiconductor Corp | Bilfinger vs. Westinghouse Air Brake |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |