Correlation Between Live Oak and Blackrock Government
Can any of the company-specific risk be diversified away by investing in both Live Oak and Blackrock Government 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 Blackrock Government 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 Blackrock Government Bond, you can compare the effects of market volatilities on Live Oak and Blackrock Government 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 Blackrock Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Oak and Blackrock Government.
Diversification Opportunities for Live Oak and Blackrock Government
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Live and Blackrock is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Live Oak Health and Blackrock Government Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Government Bond 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 Blackrock Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Government Bond has no effect on the direction of Live Oak i.e., Live Oak and Blackrock Government go up and down completely randomly.
Pair Corralation between Live Oak and Blackrock Government
Assuming the 90 days horizon Live Oak is expected to generate 37.0 times less return on investment than Blackrock Government. In addition to that, Live Oak is 1.28 times more volatile than Blackrock Government Bond. It trades about 0.0 of its total potential returns per unit of risk. Blackrock Government Bond is currently generating about 0.03 per unit of volatility. If you would invest 925.00 in Blackrock Government Bond on September 14, 2024 and sell it today you would earn a total of 55.00 from holding Blackrock Government Bond or generate 5.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.27% |
| Values | Daily Returns |
Live Oak Health vs. Blackrock Government Bond
Performance |
| Timeline |
| Live Oak Health |
| Blackrock Government Bond |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Live Oak and Blackrock Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Oak and Blackrock Government
The main advantage of trading using opposite Live Oak and Blackrock Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Oak position performs unexpectedly, Blackrock Government 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 Blackrock Government will offset losses from the drop in Blackrock Government'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 |
| Blackrock Government vs. Prudential Health Sciences | Blackrock Government vs. Deutsche Health And | Blackrock Government vs. Delaware Healthcare Fund | Blackrock Government vs. Live Oak 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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