Correlation Between Pagaya Technologies and Oracle
Can any of the company-specific risk be diversified away by investing in both Pagaya Technologies 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 Pagaya Technologies and Oracle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pagaya Technologies and Oracle, you can compare the effects of market volatilities on Pagaya Technologies 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 Pagaya Technologies with a short position of Oracle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pagaya Technologies and Oracle.
Diversification Opportunities for Pagaya Technologies and Oracle
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pagaya and Oracle is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Pagaya Technologies and Oracle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oracle and Pagaya Technologies 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 Pagaya Technologies 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 Pagaya Technologies i.e., Pagaya Technologies and Oracle go up and down completely randomly.
Pair Corralation between Pagaya Technologies and Oracle
Considering the 90-day investment horizon Pagaya Technologies is expected to generate 2.58 times more return on investment than Oracle. However, Pagaya Technologies is 2.58 times more volatile than Oracle. It trades about 0.17 of its potential returns per unit of risk. Oracle is currently generating about -0.3 per unit of risk. If you would invest 3,136 in Pagaya Technologies on June 7, 2025 and sell it today you would earn a total of 582.00 from holding Pagaya Technologies or generate 18.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pagaya Technologies vs. Oracle
Performance |
| Timeline |
| Pagaya Technologies |
| Oracle |
Pagaya Technologies and Oracle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pagaya Technologies and Oracle
The main advantage of trading using opposite Pagaya Technologies and Oracle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pagaya Technologies 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.| Pagaya Technologies vs. Palantir Technologies Class | Pagaya Technologies vs. Crowdstrike Holdings | Pagaya Technologies vs. Oracle | Pagaya Technologies vs. CoreWeave, Class A |
| Oracle vs. Adobe Systems Incorporated | Oracle vs. Palo Alto Networks | Oracle vs. Crowdstrike Holdings | Oracle vs. Microsoft |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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