Correlation Between Live Oak and Ubs Total
Can any of the company-specific risk be diversified away by investing in both Live Oak and Ubs Total 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 Ubs Total 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 Ubs Total Return, you can compare the effects of market volatilities on Live Oak and Ubs Total 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 Ubs Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Oak and Ubs Total.
Diversification Opportunities for Live Oak and Ubs Total
Poor diversification
The 3 months correlation between Live and Ubs is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Live Oak Health and Ubs Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubs Total Return 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 Ubs Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubs Total Return has no effect on the direction of Live Oak i.e., Live Oak and Ubs Total go up and down completely randomly.
Pair Corralation between Live Oak and Ubs Total
Assuming the 90 days horizon Live Oak Health is expected to generate 2.44 times more return on investment than Ubs Total. However, Live Oak is 2.44 times more volatile than Ubs Total Return. It trades about 0.03 of its potential returns per unit of risk. Ubs Total Return is currently generating about 0.06 per unit of risk. If you would invest 2,096 in Live Oak Health on September 2, 2024 and sell it today you would earn a total of 116.00 from holding Live Oak Health or generate 5.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Oak Health vs. Ubs Total Return
Performance |
| Timeline |
| Live Oak Health |
| Ubs Total Return |
Live Oak and Ubs Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Oak and Ubs Total
The main advantage of trading using opposite Live Oak and Ubs Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Oak position performs unexpectedly, Ubs Total 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 Ubs Total will offset losses from the drop in Ubs Total'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 |
| Ubs Total vs. Health Care Fund | Ubs Total vs. Live Oak Health | Ubs Total vs. Delaware Healthcare Fund | Ubs Total vs. Lord Abbett Health |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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