Correlation Between Alphabet and Live Oak
Can any of the company-specific risk be diversified away by investing in both Alphabet 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 Alphabet and Live Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphabet Inc Class C and Live Oak Health, you can compare the effects of market volatilities on Alphabet 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 Alphabet with a short position of Live Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphabet and Live Oak.
Diversification Opportunities for Alphabet and Live Oak
Very poor diversification
The 3 months correlation between Alphabet and LIVE is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Alphabet Inc Class C 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 Alphabet 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 Alphabet Inc Class C 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 Alphabet i.e., Alphabet and Live Oak go up and down completely randomly.
Pair Corralation between Alphabet and Live Oak
Given the investment horizon of 90 days Alphabet Inc Class C is expected to generate 2.36 times more return on investment than Live Oak. However, Alphabet is 2.36 times more volatile than Live Oak Health. It trades about 0.3 of its potential returns per unit of risk. Live Oak Health is currently generating about 0.27 per unit of risk. If you would invest 20,473 in Alphabet Inc Class C on August 15, 2025 and sell it today you would earn a total of 8,270 from holding Alphabet Inc Class C or generate 40.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alphabet Inc Class C vs. Live Oak Health
Performance |
| Timeline |
| Alphabet Class C |
| Live Oak Health |
Alphabet and Live Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphabet and Live Oak
The main advantage of trading using opposite Alphabet and Live Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphabet 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.| Alphabet vs. Microsoft | Alphabet vs. Meta Platforms | Alphabet vs. Apple Inc | Alphabet vs. Taiwan Semiconductor Manufacturing |
| Live Oak vs. Wesmark Tactical Opportunity | Live Oak vs. T Rowe Price | Live Oak vs. Nuveen Large Cap | Live Oak vs. Paradigm Value 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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