Correlation Between Live Oak and American Funds
Can any of the company-specific risk be diversified away by investing in both Live Oak and American Funds 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 American Funds 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 American Funds College, you can compare the effects of market volatilities on Live Oak and American Funds 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 American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Oak and American Funds.
Diversification Opportunities for Live Oak and American Funds
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LIVE and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Live Oak Health and American Funds College in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds College 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 American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds College has no effect on the direction of Live Oak i.e., Live Oak and American Funds go up and down completely randomly.
Pair Corralation between Live Oak and American Funds
If you would invest 2,166 in Live Oak Health on August 28, 2024 and sell it today you would earn a total of 32.00 from holding Live Oak Health or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Live Oak Health vs. American Funds College
Performance |
| Timeline |
| Live Oak Health |
| American Funds College |
Live Oak and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Oak and American Funds
The main advantage of trading using opposite Live Oak and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Oak position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' 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 |
| American Funds vs. Baron Health Care | American Funds vs. Live Oak Health | American Funds vs. Deutsche Health And | American Funds vs. Delaware Healthcare Fund |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |