Correlation Between Oracle Financial and GVP Infotech

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

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

Diversification Opportunities for Oracle Financial and GVP Infotech

0.15

Correlation Coefficient

Oracle Financial  GVP Infotech

Average diversification

The 3 months correlation between Oracle and GVP is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Oracle Financial Services and GVP Infotech Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GVP Infotech Limited and Oracle Financial 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 Financial Services are associated (or correlated) with GVP Infotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GVP Infotech Limited has no effect on the direction of Oracle Financial i.e., Oracle Financial and GVP Infotech go up and down completely randomly.

Pair Corralation between Oracle Financial and GVP Infotech

Assuming the 90 days trading horizon Oracle Financial Services is expected to generate 0.71 times more return on investment than GVP Infotech. However, Oracle Financial Services is 1.4 times less risky than GVP Infotech. It trades about 0.09 of its potential returns per unit of risk. GVP Infotech Limited is currently generating about 0.04 per unit of risk. If you would invest  793,579  in Oracle Financial Services on April 22, 2025 and sell it today you would earn a total of  85,471  from holding Oracle Financial Services or generate 10.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Oracle Financial Services  vs.  GVP Infotech Limited

Oracle Financial Services

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Oracle Financial Services are ranked lower than 6 (%) 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.

GVP Infotech Limited

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in GVP Infotech Limited are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady technical and fundamental indicators, GVP Infotech may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Oracle Financial and GVP Infotech

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

The idea behind Oracle Financial Services and GVP Infotech Limited 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.