Correlation Between Apple and ORACLE

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

By analyzing existing cross correlation between Apple Inc and ORACLE PORATION, you can compare the effects of market volatilities on Apple and ORACLE 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 Apple with a short position of ORACLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and ORACLE.

Diversification Opportunities for Apple and ORACLE

-0.12

Correlation Coefficient

Apple  ORACLE

Good diversification

The 3 months correlation between Apple and ORACLE is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and ORACLE PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ORACLE PORATION and Apple 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 Apple Inc are associated (or correlated) with ORACLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ORACLE PORATION has no effect on the direction of Apple i.e., Apple and ORACLE go up and down completely randomly.

Pair Corralation between Apple and ORACLE

Given the investment horizon of 90 days Apple Inc is expected to generate 0.54 times more return on investment than ORACLE. However, Apple Inc is 1.86 times less risky than ORACLE. It trades about 0.22 of its potential returns per unit of risk. ORACLE PORATION is currently generating about 0.07 per unit of risk. If you would invest  22,950  in Apple Inc on September 2, 2025 and sell it today you would earn a total of  4,935  from holding Apple Inc or generate 21.5% return on investment over 90 days.

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

Apple Inc  vs.  ORACLE PORATION

Apple Inc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile basic indicators, Apple disclosed solid returns over the last few months and may actually be approaching a breakup point.

ORACLE PORATION

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in ORACLE PORATION are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, ORACLE may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with Apple and ORACLE

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

The idea behind Apple Inc and ORACLE PORATION 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.