Correlation Between Oxurion NV and Oracle
Can any of the company-specific risk be diversified away by investing in both Oxurion NV and Oracle 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 Oxurion NV and Oracle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxurion NV and Oracle, you can compare the effects of market volatilities on Oxurion NV and Oracle 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 Oxurion NV with a short position of Oracle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxurion NV and Oracle.
Diversification Opportunities for Oxurion NV and Oracle
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oxurion and Oracle is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Oxurion NV and Oracle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oracle and Oxurion NV 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 Oxurion NV are associated (or correlated) with Oracle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oracle has no effect on the direction of Oxurion NV i.e., Oxurion NV and Oracle go up and down completely randomly.
Pair Corralation between Oxurion NV and Oracle
Assuming the 90 days horizon Oxurion NV is expected to generate 1.61 times less return on investment than Oracle. In addition to that, Oxurion NV is 3.35 times more volatile than Oracle. It trades about 0.03 of its total potential returns per unit of risk. Oracle is currently generating about 0.17 per unit of volatility. If you would invest 16,086 in Oracle on August 30, 2024 and sell it today you would earn a total of 1,494 from holding Oracle or generate 9.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 17.39% |
| Values | Daily Returns |
Oxurion NV vs. Oracle
Performance |
| Timeline |
| Oxurion NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Oracle |
Oxurion NV and Oracle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxurion NV and Oracle
The main advantage of trading using opposite Oxurion NV and Oracle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxurion NV position performs unexpectedly, Oracle 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 Oracle will offset losses from the drop in Oracle's long position.| Oxurion NV vs. GLG LIFE TECH | Oxurion NV vs. AAC TECHNOLOGHLDGADR | Oxurion NV vs. ACCSYS TECHPLC EO | Oxurion NV vs. Perseus Mining Limited |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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