Correlation Between Live Oak and Blackrock Alternative
Can any of the company-specific risk be diversified away by investing in both Live Oak and Blackrock Alternative 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 Alternative 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 Alternative Capital, you can compare the effects of market volatilities on Live Oak and Blackrock Alternative 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 Alternative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Oak and Blackrock Alternative.
Diversification Opportunities for Live Oak and Blackrock Alternative
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Live and Blackrock is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Live Oak Health and Blackrock Alternative Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Alternative 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 Alternative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Alternative has no effect on the direction of Live Oak i.e., Live Oak and Blackrock Alternative go up and down completely randomly.
Pair Corralation between Live Oak and Blackrock Alternative
Assuming the 90 days horizon Live Oak Health is expected to generate 4.24 times more return on investment than Blackrock Alternative. However, Live Oak is 4.24 times more volatile than Blackrock Alternative Capital. It trades about 0.1 of its potential returns per unit of risk. Blackrock Alternative Capital is currently generating about 0.21 per unit of risk. If you would invest 2,164 in Live Oak Health on August 30, 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 | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Live Oak Health vs. Blackrock Alternative Capital
Performance |
| Timeline |
| Live Oak Health |
| Blackrock Alternative |
Live Oak and Blackrock Alternative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Oak and Blackrock Alternative
The main advantage of trading using opposite Live Oak and Blackrock Alternative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Oak position performs unexpectedly, Blackrock Alternative 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 Alternative will offset losses from the drop in Blackrock Alternative'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 Alternative vs. T Rowe Price | Blackrock Alternative vs. Volumetric Fund Volumetric | Blackrock Alternative vs. Bbh Limited Duration | Blackrock Alternative vs. Balanced Fund Investor |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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