Correlation Between PUBLIC STORAGE and Oracle

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

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

Diversification Opportunities for PUBLIC STORAGE and Oracle

0.75

Correlation Coefficient

PUBLIC STORAGE  Oracle

Poor diversification

The 3 months correlation between PUBLIC and Oracle is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding PUBLIC STORAGE PRFO and Oracle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oracle and PUBLIC STORAGE 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 PUBLIC STORAGE PRFO 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 PUBLIC STORAGE i.e., PUBLIC STORAGE and Oracle go up and down completely randomly.

Pair Corralation between PUBLIC STORAGE and Oracle

Assuming the 90 days trading horizon PUBLIC STORAGE is expected to generate 3.68 times less return on investment than Oracle. But when comparing it to its historical volatility, PUBLIC STORAGE PRFO is 5.96 times less risky than Oracle. It trades about 0.14 of its potential returns per unit of risk. Oracle is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  19,768  in Oracle on July 5, 2025 and sell it today you would earn a total of  4,642  from holding Oracle or generate 23.48% return on investment over 90 days.

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

PUBLIC STORAGE PRFO  vs.  Oracle

PUBLIC STORAGE PRFO

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PUBLIC STORAGE PRFO are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, PUBLIC STORAGE may actually be approaching a critical reversion point that can send shares even higher in November 2025.

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 nearly fragile basic indicators, Oracle reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PUBLIC STORAGE and Oracle

The main advantage of trading using opposite PUBLIC STORAGE and Oracle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PUBLIC STORAGE 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 PUBLIC STORAGE PRFO 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.