Correlation Between Live Oak and 361 Global
Can any of the company-specific risk be diversified away by investing in both Live Oak and 361 Global 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 361 Global 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 361 Global Longshort, you can compare the effects of market volatilities on Live Oak and 361 Global 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 361 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Oak and 361 Global.
Diversification Opportunities for Live Oak and 361 Global
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Live and 361 is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Live Oak Health and 361 Global Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 361 Global Longshort 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 361 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 361 Global Longshort has no effect on the direction of Live Oak i.e., Live Oak and 361 Global go up and down completely randomly.
Pair Corralation between Live Oak and 361 Global
Assuming the 90 days horizon Live Oak Health is expected to under-perform the 361 Global. In addition to that, Live Oak is 1.67 times more volatile than 361 Global Longshort. It trades about -0.32 of its total potential returns per unit of risk. 361 Global Longshort is currently generating about -0.25 per unit of volatility. If you would invest 1,286 in 361 Global Longshort on September 14, 2024 and sell it today you would lose (33.00) from holding 361 Global Longshort or give up 2.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Oak Health vs. 361 Global Longshort
Performance |
| Timeline |
| Live Oak Health |
| 361 Global Longshort |
Live Oak and 361 Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Oak and 361 Global
The main advantage of trading using opposite Live Oak and 361 Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Oak position performs unexpectedly, 361 Global 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 361 Global will offset losses from the drop in 361 Global'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 |
| 361 Global vs. The Gabelli Healthcare | 361 Global vs. Baillie Gifford Health | 361 Global vs. Live Oak Health | 361 Global vs. Alger Health Sciences |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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