Correlation Between Live Oak and Aberdeen Asia
Can any of the company-specific risk be diversified away by investing in both Live Oak and Aberdeen Asia 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 Live Oak and Aberdeen Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Live Oak Health and Aberdeen Asia Bd, you can compare the effects of market volatilities on Live Oak and Aberdeen Asia 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 Live Oak with a short position of Aberdeen Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Oak and Aberdeen Asia.
Diversification Opportunities for Live Oak and Aberdeen Asia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Live and Aberdeen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Live Oak Health and Aberdeen Asia Bd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Asia Bd and Live Oak 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 Live Oak Health are associated (or correlated) with Aberdeen Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Asia Bd has no effect on the direction of Live Oak i.e., Live Oak and Aberdeen Asia go up and down completely randomly.
Pair Corralation between Live Oak and Aberdeen Asia
If you would invest 2,168 in Live Oak Health on September 1, 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 | 4.76% |
| Values | Daily Returns |
Live Oak Health vs. Aberdeen Asia Bd
Performance |
| Timeline |
| Live Oak Health |
| Aberdeen Asia Bd |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Live Oak and Aberdeen Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Oak and Aberdeen Asia
The main advantage of trading using opposite Live Oak and Aberdeen Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Oak position performs unexpectedly, Aberdeen Asia 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 Aberdeen Asia will offset losses from the drop in Aberdeen Asia's long position.| Live Oak vs. Black Oak Emerging | Live Oak vs. Pin Oak Equity | Live Oak vs. Red Oak Technology | Live Oak vs. White Oak Select |
| Aberdeen Asia vs. Live Oak Health | Aberdeen Asia vs. Baillie Gifford Health | Aberdeen Asia vs. The Hartford Healthcare | Aberdeen Asia vs. Invesco Global Health |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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