Correlation Between Oracle and Saat Market
Can any of the company-specific risk be diversified away by investing in both Oracle and Saat Market 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 Saat Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oracle and Saat Market Growth, you can compare the effects of market volatilities on Oracle and Saat Market 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 Saat Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oracle and Saat Market.
Diversification Opportunities for Oracle and Saat Market
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oracle and Saat is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Oracle and Saat Market Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Market Growth 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 Saat Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Market Growth has no effect on the direction of Oracle i.e., Oracle and Saat Market go up and down completely randomly.
Pair Corralation between Oracle and Saat Market
Given the investment horizon of 90 days Oracle is expected to generate 4.53 times more return on investment than Saat Market. However, Oracle is 4.53 times more volatile than Saat Market Growth. It trades about 0.1 of its potential returns per unit of risk. Saat Market Growth is currently generating about 0.14 per unit of risk. If you would invest 10,799 in Oracle on September 4, 2024 and sell it today you would earn a total of 7,342 from holding Oracle or generate 67.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.66% |
| Values | Daily Returns |
Oracle vs. Saat Market Growth
Performance |
| Timeline |
| Oracle |
| Saat Market Growth |
Oracle and Saat Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oracle and Saat Market
The main advantage of trading using opposite Oracle and Saat Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oracle position performs unexpectedly, Saat Market 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 Saat Market will offset losses from the drop in Saat Market's long position.| Oracle vs. Palo Alto Networks | Oracle vs. Crowdstrike Holdings | Oracle vs. Microsoft | Oracle vs. Block Inc |
| Saat Market vs. Global Gold Fund | Saat Market vs. Gabelli Gold Fund | Saat Market vs. Goldman Sachs Clean | Saat Market vs. Vy Goldman Sachs |
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 CEOs Directory module to screen CEOs from public companies around the world.
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