Correlation Between XBP Europe and Oracle

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

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

Diversification Opportunities for XBP Europe and Oracle

-0.51

Correlation Coefficient

XBP Europe  Oracle

Excellent diversification

The 3 months correlation between XBP and Oracle is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding XBP Europe Holdings and Oracle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oracle and XBP Europe 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 XBP Europe Holdings 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 XBP Europe i.e., XBP Europe and Oracle go up and down completely randomly.

Pair Corralation between XBP Europe and Oracle

Considering the 90-day investment horizon XBP Europe Holdings is expected to under-perform the Oracle. In addition to that, XBP Europe is 4.65 times more volatile than Oracle. It trades about -0.04 of its total potential returns per unit of risk. Oracle is currently generating about 0.28 per unit of volatility. If you would invest  16,193  in Oracle on May 13, 2025 and sell it today you would earn a total of  8,812  from holding Oracle or generate 54.42% return on investment over 90 days.

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

XBP Europe Holdings  vs.  Oracle

XBP Europe Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days XBP Europe Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's fundamental drivers remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Oracle

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Oracle are ranked lower than 22 (%) 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 XBP Europe and Oracle

The main advantage of trading using opposite XBP Europe and Oracle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XBP Europe 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 XBP Europe Holdings 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.