Correlation Between Dreyfus High and Live Oak
Can any of the company-specific risk be diversified away by investing in both Dreyfus High 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 Dreyfus High and Live Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus High Yield and Live Oak Health, you can compare the effects of market volatilities on Dreyfus High 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 Dreyfus High with a short position of Live Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus High and Live Oak.
Diversification Opportunities for Dreyfus High and Live Oak
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dreyfus and Live is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus High Yield 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 Dreyfus High 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 Dreyfus High Yield 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 Dreyfus High i.e., Dreyfus High and Live Oak go up and down completely randomly.
Pair Corralation between Dreyfus High and Live Oak
Assuming the 90 days horizon Dreyfus High is expected to generate 2.27 times less return on investment than Live Oak. But when comparing it to its historical volatility, Dreyfus High Yield is 5.69 times less risky than Live Oak. It trades about 0.25 of its potential returns per unit of risk. Live Oak Health is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,164 in Live Oak Health on August 30, 2024 and sell it today you would earn a total of 44.00 from holding Live Oak Health or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfus High Yield vs. Live Oak Health
Performance |
| Timeline |
| Dreyfus High Yield |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Live Oak Health |
Dreyfus High and Live Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus High and Live Oak
The main advantage of trading using opposite Dreyfus High and Live Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus High 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.| Dreyfus High vs. Commonwealth Real Estate | Dreyfus High vs. Msif Real Estate | Dreyfus High vs. Dunham Real Estate | Dreyfus High vs. Redwood Real Estate |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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