Correlation Between Varonis Systems and Oracle

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

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

Diversification Opportunities for Varonis Systems and Oracle

0.84

Correlation Coefficient

Varonis Systems  Oracle

Very poor diversification

The 3 months correlation between Varonis and Oracle is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Varonis Systems and Oracle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oracle and Varonis Systems 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 Varonis Systems 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 Varonis Systems i.e., Varonis Systems and Oracle go up and down completely randomly.

Pair Corralation between Varonis Systems and Oracle

Given the investment horizon of 90 days Varonis Systems is expected to generate 2.08 times less return on investment than Oracle. But when comparing it to its historical volatility, Varonis Systems is 1.41 times less risky than Oracle. It trades about 0.19 of its potential returns per unit of risk. Oracle is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  15,930  in Oracle on May 17, 2025 and sell it today you would earn a total of  8,566  from holding Oracle or generate 53.77% return on investment over 90 days.

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

Varonis Systems  vs.  Oracle

Varonis Systems

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Varonis Systems are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Varonis Systems unveiled solid returns over the last few months and may actually be approaching a breakup point.

Oracle

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Oracle are ranked lower than 21 (%) 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 Varonis Systems and Oracle

The main advantage of trading using opposite Varonis Systems and Oracle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Varonis Systems 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 Varonis Systems 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.