Correlation Between Bharti Airtel and Oracle Financial

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

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

Diversification Opportunities for Bharti Airtel and Oracle Financial

0.43

Correlation Coefficient

Bharti Airtel  Oracle Financial

Very weak diversification

The 3 months correlation between Bharti and Oracle is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Bharti Airtel Limited 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 Bharti Airtel 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 Bharti Airtel Limited 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 Bharti Airtel i.e., Bharti Airtel and Oracle Financial go up and down completely randomly.

Pair Corralation between Bharti Airtel and Oracle Financial

Assuming the 90 days trading horizon Bharti Airtel Limited is expected to generate 1.15 times more return on investment than Oracle Financial. However, Bharti Airtel is 1.15 times more volatile than Oracle Financial Services. It trades about 0.16 of its potential returns per unit of risk. Oracle Financial Services is currently generating about -0.37 per unit of risk. If you would invest  185,480  in Bharti Airtel Limited on April 18, 2025 and sell it today you would earn a total of  8,180  from holding Bharti Airtel Limited or generate 4.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.65%
Values	Daily Returns

Bharti Airtel Limited  vs.  Oracle Financial Services

Bharti Airtel Limited

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Bharti Airtel Limited are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Bharti Airtel is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Oracle Financial Services

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Oracle Financial Services are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Oracle Financial may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Bharti Airtel and Oracle Financial

The main advantage of trading using opposite Bharti Airtel and Oracle Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bharti Airtel 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 Bharti Airtel Limited 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.

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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.