Correlation Between Live Oak and Dfa One
Can any of the company-specific risk be diversified away by investing in both Live Oak and Dfa One 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 Dfa One 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 Dfa One Year Fixed, you can compare the effects of market volatilities on Live Oak and Dfa One 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 Dfa One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Oak and Dfa One.
Diversification Opportunities for Live Oak and Dfa One
Excellent diversification
The 3 months correlation between Live and Dfa is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Live Oak Health and Dfa One Year Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dfa One Year 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 Dfa One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dfa One Year has no effect on the direction of Live Oak i.e., Live Oak and Dfa One go up and down completely randomly.
Pair Corralation between Live Oak and Dfa One
Assuming the 90 days horizon Live Oak Health is expected to under-perform the Dfa One. In addition to that, Live Oak is 6.96 times more volatile than Dfa One Year Fixed. It trades about -0.32 of its total potential returns per unit of risk. Dfa One Year Fixed is currently generating about 0.0 per unit of volatility. If you would invest 1,021 in Dfa One Year Fixed on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Dfa One Year Fixed or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Oak Health vs. Dfa One Year Fixed
Performance |
| Timeline |
| Live Oak Health |
| Dfa One Year |
Live Oak and Dfa One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Oak and Dfa One
The main advantage of trading using opposite Live Oak and Dfa One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Oak position performs unexpectedly, Dfa One 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 Dfa One will offset losses from the drop in Dfa One'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 |
| Dfa One vs. Live Oak Health | Dfa One vs. Tekla Healthcare Opportunities | Dfa One vs. Delaware Healthcare Fund | Dfa One 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 CEOs Directory module to screen CEOs from public companies around the world.
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