Correlation Between Live Oak and Eventide Exponential
Can any of the company-specific risk be diversified away by investing in both Live Oak and Eventide Exponential 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 Eventide Exponential 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 Eventide Exponential Technologies, you can compare the effects of market volatilities on Live Oak and Eventide Exponential 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 Eventide Exponential. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Oak and Eventide Exponential.
Diversification Opportunities for Live Oak and Eventide Exponential
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Live and Eventide is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Live Oak Health and Eventide Exponential Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eventide Exponential 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 Eventide Exponential. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eventide Exponential has no effect on the direction of Live Oak i.e., Live Oak and Eventide Exponential go up and down completely randomly.
Pair Corralation between Live Oak and Eventide Exponential
Assuming the 90 days horizon Live Oak is expected to generate 5.54 times less return on investment than Eventide Exponential. But when comparing it to its historical volatility, Live Oak Health is 1.61 times less risky than Eventide Exponential. It trades about 0.1 of its potential returns per unit of risk. Eventide Exponential Technologies is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 1,200 in Eventide Exponential Technologies on September 1, 2024 and sell it today you would earn a total of 152.00 from holding Eventide Exponential Technologies or generate 12.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Live Oak Health vs. Eventide Exponential Technolog
Performance |
| Timeline |
| Live Oak Health |
| Eventide Exponential |
Live Oak and Eventide Exponential Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Oak and Eventide Exponential
The main advantage of trading using opposite Live Oak and Eventide Exponential positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Oak position performs unexpectedly, Eventide Exponential 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 Eventide Exponential will offset losses from the drop in Eventide Exponential'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 |
| Eventide Exponential vs. Touchstone Large Cap | Eventide Exponential vs. Jhancock Disciplined Value | Eventide Exponential vs. Qs Large Cap | Eventide Exponential vs. Legg Mason Bw |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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