Correlation Between Invesco Global and Live Oak
Can any of the company-specific risk be diversified away by investing in both Invesco Global 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 Invesco Global and Live Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco Global Health and Live Oak Health, you can compare the effects of market volatilities on Invesco Global 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 Invesco Global with a short position of Live Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco Global and Live Oak.
Diversification Opportunities for Invesco Global and Live Oak
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between INVESCO and Live is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Invesco Global Health 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 Invesco Global 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 Invesco Global Health 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 Invesco Global i.e., Invesco Global and Live Oak go up and down completely randomly.
Pair Corralation between Invesco Global and Live Oak
Assuming the 90 days horizon Invesco Global is expected to generate 1.56 times less return on investment than Live Oak. In addition to that, Invesco Global is 1.08 times more volatile than Live Oak Health. It trades about 0.01 of its total potential returns per unit of risk. Live Oak Health is currently generating about 0.02 per unit of volatility. If you would invest 1,891 in Live Oak Health on March 24, 2025 and sell it today you would earn a total of 161.00 from holding Live Oak Health or generate 8.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invesco Global Health vs. Live Oak Health
Performance |
| Timeline |
| Invesco Global Health |
| Live Oak Health |
Invesco Global and Live Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco Global and Live Oak
The main advantage of trading using opposite Invesco Global and Live Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco Global 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.| Invesco Global vs. Gabelli Convertible And | Invesco Global vs. Advent Claymore Convertible | Invesco Global vs. Putnam Convertible Securities | Invesco Global vs. Allianzgi Convertible Income |
| Live Oak vs. Black Oak Emerging | Live Oak vs. Pin Oak Equity | Live Oak vs. Red Oak Technology | Live Oak vs. White Oak Select |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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