Correlation Between Orissa Minerals and Oracle Financial

Can any of the company-specific risk be diversified away by investing in both Orissa Minerals and Oracle Financial 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 Orissa Minerals and Oracle Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between The Orissa Minerals and Oracle Financial Services, you can compare the effects of market volatilities on Orissa Minerals and Oracle Financial 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 Orissa Minerals with a short position of Oracle Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orissa Minerals and Oracle Financial.

Diversification Opportunities for Orissa Minerals and Oracle Financial

-0.51

Correlation Coefficient

Orissa Minerals  Oracle Financial

Excellent diversification

The 3 months correlation between Orissa and Oracle is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding The Orissa Minerals and Oracle Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oracle Financial Services and Orissa Minerals 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 The Orissa Minerals are associated (or correlated) with Oracle Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oracle Financial Services has no effect on the direction of Orissa Minerals i.e., Orissa Minerals and Oracle Financial go up and down completely randomly.

Pair Corralation between Orissa Minerals and Oracle Financial

Assuming the 90 days trading horizon The Orissa Minerals is expected to under-perform the Oracle Financial. But the stock apears to be less risky and, when comparing its historical volatility, The Orissa Minerals is 1.25 times less risky than Oracle Financial. The stock trades about -0.17 of its potential returns per unit of risk. The Oracle Financial Services is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  1,093,815  in Oracle Financial Services on October 6, 2024 and sell it today you would earn a total of  157,990  from holding Oracle Financial Services or generate 14.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

The Orissa Minerals  vs.  Oracle Financial Services

Orissa Minerals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days The Orissa Minerals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's forward indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Oracle Financial Services

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Oracle Financial Services are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Oracle Financial unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Orissa Minerals and Oracle Financial

The main advantage of trading using opposite Orissa Minerals and Oracle Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orissa Minerals position performs unexpectedly, Oracle Financial 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 Financial will offset losses from the drop in Oracle Financial's long position.

The idea behind The Orissa Minerals and Oracle Financial Services 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.

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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.