Correlation Between Oracle and SOUTHERN

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Oracle and SOUTHERN 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 SOUTHERN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oracle and SOUTHERN CALIF EDISON, you can compare the effects of market volatilities on Oracle and SOUTHERN 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 SOUTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oracle and SOUTHERN.

Diversification Opportunities for Oracle and SOUTHERN

-0.5
  Correlation Coefficient

Very good diversification

The 3 months correlation between Oracle and SOUTHERN is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Oracle and SOUTHERN CALIF EDISON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN CALIF EDISON 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 SOUTHERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHERN CALIF EDISON has no effect on the direction of Oracle i.e., Oracle and SOUTHERN go up and down completely randomly.

Pair Corralation between Oracle and SOUTHERN

Given the investment horizon of 90 days Oracle is expected to generate 1.52 times more return on investment than SOUTHERN. However, Oracle is 1.52 times more volatile than SOUTHERN CALIF EDISON. It trades about 0.19 of its potential returns per unit of risk. SOUTHERN CALIF EDISON is currently generating about -0.18 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  1,330  from holding Oracle or generate 7.84% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy90.91%
ValuesDaily Returns

Oracle  vs.  SOUTHERN CALIF EDISON

 Performance 
       Timeline  
Oracle 

Risk-Adjusted Performance

15 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Oracle are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite quite abnormal fundamental indicators, Oracle disclosed solid returns over the last few months and may actually be approaching a breakup point.
SOUTHERN CALIF EDISON 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days SOUTHERN CALIF EDISON has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for SOUTHERN CALIF EDISON investors.

Oracle and SOUTHERN Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Oracle and SOUTHERN

The main advantage of trading using opposite Oracle and SOUTHERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oracle position performs unexpectedly, SOUTHERN 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 SOUTHERN will offset losses from the drop in SOUTHERN's long position.
Oracle vs. Palo Alto Networks
Oracle vs. Crowdstrike Holdings
Oracle vs. Microsoft
Oracle vs. Block Inc
The idea behind Oracle and SOUTHERN CALIF EDISON pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
SOUTHERN vs. Park Ohio Holdings
SOUTHERN vs. Primoris Services
SOUTHERN vs. Griffon
SOUTHERN vs. AKITA Drilling
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

Other Complementary Tools

Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Technical Analysis
Check basic technical indicators and analysis based on most latest market data


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY