Correlation Between Live Oak and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Live Oak and Cohen Steers 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 Cohen Steers 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 Cohen Steers Mlp, you can compare the effects of market volatilities on Live Oak and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Oak and Cohen Steers.
Diversification Opportunities for Live Oak and Cohen Steers
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Live and Cohen is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Live Oak Health and Cohen Steers Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Mlp 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Mlp has no effect on the direction of Live Oak i.e., Live Oak and Cohen Steers go up and down completely randomly.
Pair Corralation between Live Oak and Cohen Steers
Assuming the 90 days horizon Live Oak is expected to generate 4.53 times less return on investment than Cohen Steers. But when comparing it to its historical volatility, Live Oak Health is 1.18 times less risky than Cohen Steers. It trades about 0.01 of its potential returns per unit of risk. Cohen Steers Mlp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 712.00 in Cohen Steers Mlp on November 7, 2024 and sell it today you would earn a total of 157.00 from holding Cohen Steers Mlp or generate 22.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Oak Health vs. Cohen Steers Mlp
Performance |
| Timeline |
| Live Oak Health |
| Cohen Steers Mlp |
Live Oak and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Oak and Cohen Steers
The main advantage of trading using opposite Live Oak and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Oak position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' 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 |
| Cohen Steers vs. Baird Quality Intermediate | Cohen Steers vs. Franklin Adjustable Government | Cohen Steers vs. T Rowe Price | Cohen Steers vs. Oppenheimer Rochester Mn |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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