Correlation Between Oracle and SIG Combibloc
Can any of the company-specific risk be diversified away by investing in both Oracle and SIG Combibloc 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 SIG Combibloc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oracle and SIG Combibloc Group, you can compare the effects of market volatilities on Oracle and SIG Combibloc 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 SIG Combibloc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oracle and SIG Combibloc.
Diversification Opportunities for Oracle and SIG Combibloc
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oracle and SIG is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Oracle and SIG Combibloc Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIG Combibloc 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 SIG Combibloc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIG Combibloc Group has no effect on the direction of Oracle i.e., Oracle and SIG Combibloc go up and down completely randomly.
Pair Corralation between Oracle and SIG Combibloc
Given the investment horizon of 90 days Oracle is expected to generate 0.85 times more return on investment than SIG Combibloc. However, Oracle is 1.18 times less risky than SIG Combibloc. It trades about 0.08 of its potential returns per unit of risk. SIG Combibloc Group is currently generating about -0.03 per unit of risk. If you would invest 11,406 in Oracle on September 12, 2024 and sell it today you would earn a total of 7,639 from holding Oracle or generate 66.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oracle vs. SIG Combibloc Group
Performance |
| Timeline |
| Oracle |
| SIG Combibloc Group |
Oracle and SIG Combibloc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oracle and SIG Combibloc
The main advantage of trading using opposite Oracle and SIG Combibloc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oracle position performs unexpectedly, SIG Combibloc 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 SIG Combibloc will offset losses from the drop in SIG Combibloc's long position.| Oracle vs. Palo Alto Networks | Oracle vs. Crowdstrike Holdings | Oracle vs. Microsoft | Oracle vs. Block Inc |
| SIG Combibloc vs. Covestro AG | SIG Combibloc vs. Acciona SA | SIG Combibloc vs. Topaz Energy Corp | SIG Combibloc vs. Evonik Industries AG |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |