Correlation Between Oracle and Xerox Corp
Can any of the company-specific risk be diversified away by investing in both Oracle and Xerox Corp 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 Xerox Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oracle and Xerox Corp, you can compare the effects of market volatilities on Oracle and Xerox Corp 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 Xerox Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oracle and Xerox Corp.
Diversification Opportunities for Oracle and Xerox Corp
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oracle and Xerox is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Oracle and Xerox Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xerox Corp 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 Xerox Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xerox Corp has no effect on the direction of Oracle i.e., Oracle and Xerox Corp go up and down completely randomly.
Pair Corralation between Oracle and Xerox Corp
Given the investment horizon of 90 days Oracle is expected to generate 0.55 times more return on investment than Xerox Corp. However, Oracle is 1.83 times less risky than Xerox Corp. It trades about 0.36 of its potential returns per unit of risk. Xerox Corp is currently generating about 0.13 per unit of risk. If you would invest 13,984 in Oracle on April 26, 2025 and sell it today you would earn a total of 10,528 from holding Oracle or generate 75.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Oracle vs. Xerox Corp
Performance |
Timeline |
Oracle |
Xerox Corp |
Oracle and Xerox Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Oracle and Xerox Corp
The main advantage of trading using opposite Oracle and Xerox Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oracle position performs unexpectedly, Xerox Corp 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 Xerox Corp will offset losses from the drop in Xerox Corp's long position.Oracle vs. Adobe Systems Incorporated | Oracle vs. Palo Alto Networks | Oracle vs. Crowdstrike Holdings | Oracle vs. Microsoft |
Xerox Corp vs. Conduent | Xerox Corp vs. DXC Technology Co | Xerox Corp vs. Fidelity National Information | Xerox Corp vs. Corning Incorporated |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
Stocks Directory Find actively traded stocks across global markets | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |