Correlation Between Live Oak and Dfa Ny
Can any of the company-specific risk be diversified away by investing in both Live Oak and Dfa Ny 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 Ny 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 Ny Municipal, you can compare the effects of market volatilities on Live Oak and Dfa Ny 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 Ny. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Oak and Dfa Ny.
Diversification Opportunities for Live Oak and Dfa Ny
Excellent diversification
The 3 months correlation between Live and DFA is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Live Oak Health and Dfa Ny Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dfa Ny Municipal 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 Ny. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dfa Ny Municipal has no effect on the direction of Live Oak i.e., Live Oak and Dfa Ny go up and down completely randomly.
Pair Corralation between Live Oak and Dfa Ny
Assuming the 90 days horizon Live Oak Health is expected to generate 14.11 times more return on investment than Dfa Ny. However, Live Oak is 14.11 times more volatile than Dfa Ny Municipal. It trades about 0.04 of its potential returns per unit of risk. Dfa Ny Municipal is currently generating about 0.07 per unit of risk. If you would invest 2,198 in Live Oak Health on September 2, 2024 and sell it today you would earn a total of 14.00 from holding Live Oak Health or generate 0.64% 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. Dfa Ny Municipal
Performance |
| Timeline |
| Live Oak Health |
| Dfa Ny Municipal |
Live Oak and Dfa Ny Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Oak and Dfa Ny
The main advantage of trading using opposite Live Oak and Dfa Ny positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Oak position performs unexpectedly, Dfa Ny 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 Ny will offset losses from the drop in Dfa Ny'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 Ny vs. Intal High Relative | Dfa Ny vs. Dfa International | Dfa Ny vs. Dfa Inflation Protected | Dfa Ny vs. Dfa International Small |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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