Correlation Between Euronet Worldwide and Oracle

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

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

Diversification Opportunities for Euronet Worldwide and Oracle

-0.72

Correlation Coefficient

Euronet Worldwide  Oracle

Pay attention - limited upside

The 3 months correlation between Euronet and Oracle is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Euronet Worldwide and Oracle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oracle and Euronet Worldwide 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 Euronet Worldwide 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 has no effect on the direction of Euronet Worldwide i.e., Euronet Worldwide and Oracle go up and down completely randomly.

Pair Corralation between Euronet Worldwide and Oracle

Given the investment horizon of 90 days Euronet Worldwide is expected to under-perform the Oracle. But the stock apears to be less risky and, when comparing its historical volatility, Euronet Worldwide is 1.48 times less risky than Oracle. The stock trades about -0.16 of its potential returns per unit of risk. The Oracle is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  16,193  in Oracle on May 13, 2025 and sell it today you would earn a total of  8,812  from holding Oracle or generate 54.42% return on investment over 90 days.

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

Euronet Worldwide  vs.  Oracle

Euronet Worldwide

Risk-Adjusted Performance

Weakest

Over the last 90 days Euronet Worldwide has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Oracle

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Oracle are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady fundamental indicators, Oracle disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Euronet Worldwide and Oracle

The main advantage of trading using opposite Euronet Worldwide and Oracle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Euronet Worldwide 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 Euronet Worldwide and Oracle 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.