Correlation Between DBA Sempra and Oscar Health

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

By analyzing existing cross correlation between DBA Sempra 5750 and Oscar Health, you can compare the effects of market volatilities on DBA Sempra and Oscar Health 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 DBA Sempra with a short position of Oscar Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of DBA Sempra and Oscar Health.

Diversification Opportunities for DBA Sempra and Oscar Health

-0.22

Correlation Coefficient

DBA Sempra  Oscar Health

Very good diversification

The 3 months correlation between DBA and Oscar is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding DBA Sempra 5750 and Oscar Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oscar Health and DBA Sempra 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 DBA Sempra 5750 are associated (or correlated) with Oscar Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oscar Health has no effect on the direction of DBA Sempra i.e., DBA Sempra and Oscar Health go up and down completely randomly.

Pair Corralation between DBA Sempra and Oscar Health

Given the investment horizon of 90 days DBA Sempra is expected to generate 1.68 times less return on investment than Oscar Health. But when comparing it to its historical volatility, DBA Sempra 5750 is 7.1 times less risky than Oscar Health. It trades about 0.25 of its potential returns per unit of risk. Oscar Health is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  1,501  in Oscar Health on May 27, 2025 and sell it today you would earn a total of  179.00  from holding Oscar Health or generate 11.93% return on investment over 90 days.

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

DBA Sempra 5750  vs.  Oscar Health

DBA Sempra 5750

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in DBA Sempra 5750 are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile technical and fundamental indicators, DBA Sempra sustained solid returns over the last few months and may actually be approaching a breakup point.

Oscar Health

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Oscar Health are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady fundamental indicators, Oscar Health reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DBA Sempra and Oscar Health

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

The idea behind DBA Sempra 5750 and Oscar Health 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.