Correlation Between Harbor Strategic and Live Oak
Can any of the company-specific risk be diversified away by investing in both Harbor Strategic 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 Harbor Strategic and Live Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harbor Strategic Growth and Live Oak Health, you can compare the effects of market volatilities on Harbor Strategic 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 Harbor Strategic with a short position of Live Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbor Strategic and Live Oak.
Diversification Opportunities for Harbor Strategic and Live Oak
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harbor and Live is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Harbor Strategic Growth 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 Harbor Strategic 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 Harbor Strategic Growth 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 Harbor Strategic i.e., Harbor Strategic and Live Oak go up and down completely randomly.
Pair Corralation between Harbor Strategic and Live Oak
Assuming the 90 days horizon Harbor Strategic Growth is expected to generate 0.73 times more return on investment than Live Oak. However, Harbor Strategic Growth is 1.37 times less risky than Live Oak. It trades about 0.22 of its potential returns per unit of risk. Live Oak Health is currently generating about 0.1 per unit of risk. If you would invest 2,509 in Harbor Strategic Growth on September 1, 2024 and sell it today you would earn a total of 84.00 from holding Harbor Strategic Growth or generate 3.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbor Strategic Growth vs. Live Oak Health
Performance |
| Timeline |
| Harbor Strategic Growth |
| Live Oak Health |
Harbor Strategic and Live Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbor Strategic and Live Oak
The main advantage of trading using opposite Harbor Strategic and Live Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbor Strategic 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.| Harbor Strategic vs. Commonwealth Real Estate | Harbor Strategic vs. Franklin Real Estate | Harbor Strategic vs. Us Real Estate | Harbor Strategic vs. Columbia 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |