Correlation Between Spandana Sphoorty and Oracle Financial

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

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

Diversification Opportunities for Spandana Sphoorty and Oracle Financial

-0.44

Correlation Coefficient

Spandana Sphoorty  Oracle Financial

Very good diversification

The 3 months correlation between Spandana and Oracle is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Spandana Sphoorty Financial 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 Spandana Sphoorty 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 Spandana Sphoorty Financial 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 Spandana Sphoorty i.e., Spandana Sphoorty and Oracle Financial go up and down completely randomly.

Pair Corralation between Spandana Sphoorty and Oracle Financial

Assuming the 90 days trading horizon Spandana Sphoorty Financial is expected to under-perform the Oracle Financial. In addition to that, Spandana Sphoorty is 1.41 times more volatile than Oracle Financial Services. It trades about -0.01 of its total potential returns per unit of risk. Oracle Financial Services is currently generating about 0.03 per unit of volatility. If you would invest  844,934  in Oracle Financial Services on April 24, 2025 and sell it today you would earn a total of  25,816  from holding Oracle Financial Services or generate 3.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Spandana Sphoorty Financial  vs.  Oracle Financial Services

Spandana Sphoorty

Risk-Adjusted Performance

Very Weak

Over the last 90 days Spandana Sphoorty Financial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Spandana Sphoorty is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Oracle Financial Services

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Oracle Financial Services are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Oracle Financial is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Spandana Sphoorty and Oracle Financial

The main advantage of trading using opposite Spandana Sphoorty and Oracle Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spandana Sphoorty 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 Spandana Sphoorty Financial 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.