Correlation Between Live Oak and Allianzgi Mid
Can any of the company-specific risk be diversified away by investing in both Live Oak and Allianzgi Mid 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 Allianzgi Mid 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 Allianzgi Mid Cap Fund, you can compare the effects of market volatilities on Live Oak and Allianzgi Mid 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 Allianzgi Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Oak and Allianzgi Mid.
Diversification Opportunities for Live Oak and Allianzgi Mid
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Live and Allianzgi is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Live Oak Health and Allianzgi Mid Cap Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Mid 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 Allianzgi Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Mid Cap has no effect on the direction of Live Oak i.e., Live Oak and Allianzgi Mid go up and down completely randomly.
Pair Corralation between Live Oak and Allianzgi Mid
Assuming the 90 days horizon Live Oak is expected to generate 5.51 times less return on investment than Allianzgi Mid. But when comparing it to its historical volatility, Live Oak Health is 1.11 times less risky than Allianzgi Mid. It trades about 0.1 of its potential returns per unit of risk. Allianzgi Mid Cap Fund is currently generating about 0.51 of returns per unit of risk over similar time horizon. If you would invest 557.00 in Allianzgi Mid Cap Fund on September 1, 2024 and sell it today you would earn a total of 71.00 from holding Allianzgi Mid Cap Fund or generate 12.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Live Oak Health vs. Allianzgi Mid Cap Fund
Performance |
| Timeline |
| Live Oak Health |
| Allianzgi Mid Cap |
Live Oak and Allianzgi Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Oak and Allianzgi Mid
The main advantage of trading using opposite Live Oak and Allianzgi Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Oak position performs unexpectedly, Allianzgi Mid 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 Allianzgi Mid will offset losses from the drop in Allianzgi Mid'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 |
| Allianzgi Mid vs. Allianzgi Nfj Dividend | Allianzgi Mid vs. Allianzgi Nfj International | Allianzgi Mid vs. Allianzgi Vertible Fund | Allianzgi Mid vs. Allianzgi Nfj Mid Cap |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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