Correlation Between Lsv Emerging and Live Oak

Can any of the company-specific risk be diversified away by investing in both Lsv Emerging and Live Oak 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 Lsv Emerging and Live Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Lsv Emerging Markets and Live Oak Health, you can compare the effects of market volatilities on Lsv Emerging and Live Oak 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 Lsv Emerging with a short position of Live Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lsv Emerging and Live Oak.

Diversification Opportunities for Lsv Emerging and Live Oak

0.09

Correlation Coefficient

Lsv Emerging  Live Oak

Significant diversification

The 3 months correlation between Lsv and Live is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Lsv Emerging Markets and Live Oak Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Live Oak Health and Lsv Emerging 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 Lsv Emerging Markets are associated (or correlated) with Live Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Live Oak Health has no effect on the direction of Lsv Emerging i.e., Lsv Emerging and Live Oak go up and down completely randomly.

Pair Corralation between Lsv Emerging and Live Oak

If you would invest (100.00) in Lsv Emerging Markets on September 14, 2024 and sell it today you would earn a total of  100.00  from holding Lsv Emerging Markets or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Lsv Emerging Markets  vs.  Live Oak Health

Lsv Emerging Markets

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Lsv Emerging Markets has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Lsv Emerging is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Live Oak Health

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Live Oak Health has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Lsv Emerging and Live Oak

The main advantage of trading using opposite Lsv Emerging and Live Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lsv Emerging position performs unexpectedly, Live Oak 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 Live Oak will offset losses from the drop in Live Oak's long position.

The idea behind Lsv Emerging Markets and Live Oak Health pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.