Correlation Between Oracle and SITE Centers
Can any of the company-specific risk be diversified away by investing in both Oracle and SITE Centers 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 SITE Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oracle and SITE Centers Corp, you can compare the effects of market volatilities on Oracle and SITE Centers 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 SITE Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oracle and SITE Centers.
Diversification Opportunities for Oracle and SITE Centers
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Oracle and SITE is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Oracle and SITE Centers Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SITE Centers Corp 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 SITE Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SITE Centers Corp has no effect on the direction of Oracle i.e., Oracle and SITE Centers go up and down completely randomly.
Pair Corralation between Oracle and SITE Centers
Given the investment horizon of 90 days Oracle is expected to generate 29.22 times more return on investment than SITE Centers. However, Oracle is 29.22 times more volatile than SITE Centers Corp. It trades about 0.25 of its potential returns per unit of risk. SITE Centers Corp is currently generating about 0.07 per unit of risk. If you would invest 16,959 in Oracle on September 5, 2024 and sell it today you would earn a total of 1,860 from holding Oracle or generate 10.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 77.27% |
| Values | Daily Returns |
Oracle vs. SITE Centers Corp
Performance |
| Timeline |
| Oracle |
| SITE Centers Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Oracle and SITE Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oracle and SITE Centers
The main advantage of trading using opposite Oracle and SITE Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oracle position performs unexpectedly, SITE Centers 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 SITE Centers will offset losses from the drop in SITE Centers' long position.| Oracle vs. Palo Alto Networks | Oracle vs. Crowdstrike Holdings | Oracle vs. Microsoft | Oracle vs. Block Inc |
| SITE Centers vs. The Gabelli Multimedia | SITE Centers vs. The Gabelli Equity | SITE Centers vs. Virtus AllianzGI Convertible | SITE Centers vs. John Hancock Income |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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