Correlation Between Oracle and Galecto

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

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

Diversification Opportunities for Oracle and Galecto

-0.02

Correlation Coefficient

Oracle  Galecto

Good diversification

The 3 months correlation between Oracle and Galecto is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Oracle and Galecto in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galecto 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 Galecto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galecto has no effect on the direction of Oracle i.e., Oracle and Galecto go up and down completely randomly.

Pair Corralation between Oracle and Galecto

Given the investment horizon of 90 days Oracle is expected to generate 1.04 times less return on investment than Galecto. But when comparing it to its historical volatility, Oracle is 1.36 times less risky than Galecto. It trades about 0.09 of its potential returns per unit of risk. Galecto is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  325.00  in Galecto on July 5, 2025 and sell it today you would earn a total of  54.50  from holding Galecto or generate 16.77% return on investment over 90 days.

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

Oracle  vs.  Galecto

Oracle

Risk-Adjusted Performance

Mild

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

Galecto

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Galecto are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Galecto displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Oracle and Galecto

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

The idea behind Oracle and Galecto 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.