Correlation Between Goosehead Insurance and Live Oak
Can any of the company-specific risk be diversified away by investing in both Goosehead Insurance 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 Goosehead Insurance and Live Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goosehead Insurance and Live Oak Bancshares,, you can compare the effects of market volatilities on Goosehead Insurance 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 Goosehead Insurance with a short position of Live Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goosehead Insurance and Live Oak.
Diversification Opportunities for Goosehead Insurance and Live Oak
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Goosehead and Live is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Goosehead Insurance and Live Oak Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Live Oak Bancshares, and Goosehead Insurance 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 Goosehead Insurance 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 Bancshares, has no effect on the direction of Goosehead Insurance i.e., Goosehead Insurance and Live Oak go up and down completely randomly.
Pair Corralation between Goosehead Insurance and Live Oak
Given the investment horizon of 90 days Goosehead Insurance is expected to under-perform the Live Oak. In addition to that, Goosehead Insurance is 1.46 times more volatile than Live Oak Bancshares,. It trades about -0.11 of its total potential returns per unit of risk. Live Oak Bancshares, is currently generating about 0.2 per unit of volatility. If you would invest 3,215 in Live Oak Bancshares, on June 9, 2025 and sell it today you would earn a total of 621.00 from holding Live Oak Bancshares, or generate 19.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goosehead Insurance vs. Live Oak Bancshares,
Performance |
| Timeline |
| Goosehead Insurance |
| Live Oak Bancshares, |
Goosehead Insurance and Live Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goosehead Insurance and Live Oak
The main advantage of trading using opposite Goosehead Insurance and Live Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goosehead Insurance 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.| Goosehead Insurance vs. Arch Capital Group | Goosehead Insurance vs. Axa Equitable Holdings | Goosehead Insurance vs. Hamilton Lane | Goosehead Insurance vs. International General Insurance |
| Live Oak vs. Axos Financial | Live Oak vs. Community West Bancshares | Live Oak vs. First Capital | Live Oak vs. Goosehead Insurance |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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