Correlation Between Live Oak and Mfs Emerging
Can any of the company-specific risk be diversified away by investing in both Live Oak and Mfs Emerging 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 Mfs Emerging 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 Mfs Emerging Markets, you can compare the effects of market volatilities on Live Oak and Mfs Emerging 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 Mfs Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Oak and Mfs Emerging.
Diversification Opportunities for Live Oak and Mfs Emerging
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Live and Mfs is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Live Oak Health and Mfs Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Emerging Markets 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 Mfs Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Emerging Markets has no effect on the direction of Live Oak i.e., Live Oak and Mfs Emerging go up and down completely randomly.
Pair Corralation between Live Oak and Mfs Emerging
Assuming the 90 days horizon Live Oak is expected to generate 3.39 times less return on investment than Mfs Emerging. In addition to that, Live Oak is 1.52 times more volatile than Mfs Emerging Markets. It trades about 0.01 of its total potential returns per unit of risk. Mfs Emerging Markets is currently generating about 0.04 per unit of volatility. If you would invest 487.00 in Mfs Emerging Markets on September 5, 2024 and sell it today you would earn a total of 50.00 from holding Mfs Emerging Markets or generate 10.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Live Oak Health vs. Mfs Emerging Markets
Performance |
| Timeline |
| Live Oak Health |
| Mfs Emerging Markets |
Live Oak and Mfs Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Oak and Mfs Emerging
The main advantage of trading using opposite Live Oak and Mfs Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Oak position performs unexpectedly, Mfs Emerging 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 Mfs Emerging will offset losses from the drop in Mfs Emerging'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 |
| Mfs Emerging vs. Live Oak Health | Mfs Emerging vs. Baron Health Care | Mfs Emerging vs. Delaware Healthcare Fund | Mfs Emerging vs. Eventide Healthcare Life |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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