Correlation Between Oracle and Zoom Video

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

By analyzing existing cross correlation between Oracle and Zoom Video Communications, you can compare the effects of market volatilities on Oracle and Zoom Video 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 Zoom Video. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oracle and Zoom Video.

Diversification Opportunities for Oracle and Zoom Video

0.0

Correlation Coefficient

Oracle  Zoom Video

Pay attention - limited upside

The 3 months correlation between Oracle and Zoom is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oracle and Zoom Video Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoom Video Communications 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 Zoom Video. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoom Video Communications has no effect on the direction of Oracle i.e., Oracle and Zoom Video go up and down completely randomly.

Pair Corralation between Oracle and Zoom Video

If you would invest  1,637  in Zoom Video Communications on April 22, 2025 and sell it today you would earn a total of  35.00  from holding Zoom Video Communications or generate 2.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Oracle  vs.  Zoom Video Communications

Oracle

Risk-Adjusted Performance

Strong

Over the last 90 days Oracle has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, Oracle is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Zoom Video Communications

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Zoom Video Communications are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Zoom Video is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Oracle and Zoom Video

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

The idea behind Oracle and Zoom Video Communications 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.