Correlation Between Live Oak and Ab High
Can any of the company-specific risk be diversified away by investing in both Live Oak and Ab High 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 Ab High 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 Ab High Income, you can compare the effects of market volatilities on Live Oak and Ab High 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 Ab High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Oak and Ab High.
Diversification Opportunities for Live Oak and Ab High
Very good diversification
The 3 months correlation between Live and AGDAX is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Live Oak Health and Ab High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab High Income 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 Ab High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab High Income has no effect on the direction of Live Oak i.e., Live Oak and Ab High go up and down completely randomly.
Pair Corralation between Live Oak and Ab High
Assuming the 90 days horizon Live Oak is expected to generate 1.79 times less return on investment than Ab High. In addition to that, Live Oak is 2.78 times more volatile than Ab High Income. It trades about 0.03 of its total potential returns per unit of risk. Ab High Income is currently generating about 0.17 per unit of volatility. If you would invest 595.00 in Ab High Income on September 2, 2024 and sell it today you would earn a total of 110.00 from holding Ab High Income or generate 18.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Oak Health vs. Ab High Income
Performance |
| Timeline |
| Live Oak Health |
| Ab High Income |
Live Oak and Ab High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Oak and Ab High
The main advantage of trading using opposite Live Oak and Ab High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Oak position performs unexpectedly, Ab High 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 Ab High will offset losses from the drop in Ab High'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 |
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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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