Correlation Between Live Oak and Nuveen Small
Can any of the company-specific risk be diversified away by investing in both Live Oak and Nuveen Small 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 Nuveen Small 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 Nuveen Small Cap, you can compare the effects of market volatilities on Live Oak and Nuveen Small 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 Nuveen Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Oak and Nuveen Small.
Diversification Opportunities for Live Oak and Nuveen Small
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Live and Nuveen is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Live Oak Health and Nuveen Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Small Cap 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 Nuveen Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Small Cap has no effect on the direction of Live Oak i.e., Live Oak and Nuveen Small go up and down completely randomly.
Pair Corralation between Live Oak and Nuveen Small
Assuming the 90 days horizon Live Oak Health is expected to generate 0.69 times more return on investment than Nuveen Small. However, Live Oak Health is 1.46 times less risky than Nuveen Small. It trades about 0.3 of its potential returns per unit of risk. Nuveen Small Cap is currently generating about 0.11 per unit of risk. If you would invest 2,034 in Live Oak Health on November 7, 2024 and sell it today you would earn a total of 95.00 from holding Live Oak Health or generate 4.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Oak Health vs. Nuveen Small Cap
Performance |
| Timeline |
| Live Oak Health |
| Nuveen Small Cap |
Live Oak and Nuveen Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Oak and Nuveen Small
The main advantage of trading using opposite Live Oak and Nuveen Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Oak position performs unexpectedly, Nuveen Small 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 Nuveen Small will offset losses from the drop in Nuveen Small'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 |
| Nuveen Small vs. Great West Government Mortgage | Nuveen Small vs. Wesmark Government Bond | Nuveen Small vs. Aig Government Money | Nuveen Small vs. Dunham Porategovernment Bond |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |