Correlation Between Ave Maria and Live Oak
Can any of the company-specific risk be diversified away by investing in both Ave Maria and Live Oak 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 Ave Maria and Live Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ave Maria Bond and Live Oak Health, you can compare the effects of market volatilities on Ave Maria and Live Oak 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 Ave Maria with a short position of Live Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ave Maria and Live Oak.
Diversification Opportunities for Ave Maria and Live Oak
Good diversification
The 3 months correlation between Ave and Live is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Ave Maria Bond and Live Oak Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Live Oak Health and Ave Maria 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 Ave Maria Bond are associated (or correlated) with Live Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Live Oak Health has no effect on the direction of Ave Maria i.e., Ave Maria and Live Oak go up and down completely randomly.
Pair Corralation between Ave Maria and Live Oak
Assuming the 90 days horizon Ave Maria Bond is expected to generate 0.24 times more return on investment than Live Oak. However, Ave Maria Bond is 4.21 times less risky than Live Oak. It trades about 0.31 of its potential returns per unit of risk. Live Oak Health is currently generating about 0.02 per unit of risk. If you would invest 1,220 in Ave Maria Bond on September 5, 2024 and sell it today you would earn a total of 18.00 from holding Ave Maria Bond or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ave Maria Bond vs. Live Oak Health
Performance |
| Timeline |
| Ave Maria Bond |
| Live Oak Health |
Ave Maria and Live Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ave Maria and Live Oak
The main advantage of trading using opposite Ave Maria and Live Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ave Maria position performs unexpectedly, Live Oak 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 Live Oak will offset losses from the drop in Live Oak's long position.| Ave Maria vs. Columbia Real Estate | Ave Maria vs. Deutsche Real Estate | Ave Maria vs. Prudential Real Estate | Ave Maria vs. Guggenheim Risk Managed |
| Live Oak vs. Black Oak Emerging | Live Oak vs. Pin Oak Equity | Live Oak vs. Red Oak Technology | Live Oak vs. White Oak Select |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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