Correlation Between Oracle and Mainstay Moderate
Can any of the company-specific risk be diversified away by investing in both Oracle and Mainstay Moderate 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 Mainstay Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oracle and Mainstay Moderate Allocation, you can compare the effects of market volatilities on Oracle and Mainstay Moderate 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 Mainstay Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oracle and Mainstay Moderate.
Diversification Opportunities for Oracle and Mainstay Moderate
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oracle and Mainstay is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Oracle and Mainstay Moderate Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Moderate 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 Mainstay Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Moderate has no effect on the direction of Oracle i.e., Oracle and Mainstay Moderate go up and down completely randomly.
Pair Corralation between Oracle and Mainstay Moderate
Given the investment horizon of 90 days Oracle is expected to generate 4.25 times more return on investment than Mainstay Moderate. However, Oracle is 4.25 times more volatile than Mainstay Moderate Allocation. It trades about 0.17 of its potential returns per unit of risk. Mainstay Moderate Allocation is currently generating about 0.39 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 Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Oracle vs. Mainstay Moderate Allocation
Performance |
| Timeline |
| Oracle |
| Mainstay Moderate |
Oracle and Mainstay Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oracle and Mainstay Moderate
The main advantage of trading using opposite Oracle and Mainstay Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oracle position performs unexpectedly, Mainstay Moderate 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 Mainstay Moderate will offset losses from the drop in Mainstay Moderate's long position.| Oracle vs. Palo Alto Networks | Oracle vs. Crowdstrike Holdings | Oracle vs. Microsoft | Oracle vs. Block Inc |
| Mainstay Moderate vs. Old Westbury Large | Mainstay Moderate vs. Mirova Global Green | Mainstay Moderate vs. Rational Strategic Allocation | Mainstay Moderate vs. Fm Investments Large |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |