Correlation Between Live Oak and Great West
Can any of the company-specific risk be diversified away by investing in both Live Oak and Great West 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 Great West 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 Great West Lifetime 2030, you can compare the effects of market volatilities on Live Oak and Great West 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 Great West. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Oak and Great West.
Diversification Opportunities for Live Oak and Great West
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Live and Great is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Live Oak Health and Great West Lifetime 2030 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West Lifetime 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 Great West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great West Lifetime has no effect on the direction of Live Oak i.e., Live Oak and Great West go up and down completely randomly.
Pair Corralation between Live Oak and Great West
Assuming the 90 days horizon Live Oak is expected to generate 4.63 times less return on investment than Great West. In addition to that, Live Oak is 1.29 times more volatile than Great West Lifetime 2030. It trades about 0.01 of its total potential returns per unit of risk. Great West Lifetime 2030 is currently generating about 0.05 per unit of volatility. If you would invest 1,000.00 in Great West Lifetime 2030 on November 3, 2024 and sell it today you would earn a total of 73.00 from holding Great West Lifetime 2030 or generate 7.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Oak Health vs. Great West Lifetime 2030
Performance |
| Timeline |
| Live Oak Health |
| Great West Lifetime |
Live Oak and Great West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Oak and Great West
The main advantage of trading using opposite Live Oak and Great West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Oak position performs unexpectedly, Great West 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 Great West will offset losses from the drop in Great West'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 |
| Great West vs. Us High Relative | Great West vs. Pace High Yield | Great West vs. Siit High Yield | Great West vs. Calamos High Income |
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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