Correlation Between HealthStream and Live Oak
Can any of the company-specific risk be diversified away by investing in both HealthStream 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 HealthStream and Live Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HealthStream and Live Oak Bancshares,, you can compare the effects of market volatilities on HealthStream 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 HealthStream with a short position of Live Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of HealthStream and Live Oak.
Diversification Opportunities for HealthStream and Live Oak
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HealthStream and Live is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding HealthStream 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 HealthStream 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 HealthStream 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 HealthStream i.e., HealthStream and Live Oak go up and down completely randomly.
Pair Corralation between HealthStream and Live Oak
Given the investment horizon of 90 days HealthStream is expected to generate 31.67 times less return on investment than Live Oak. But when comparing it to its historical volatility, HealthStream is 1.65 times less risky than Live Oak. It trades about 0.01 of its potential returns per unit of risk. Live Oak Bancshares, is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 2,788 in Live Oak Bancshares, on May 29, 2025 and sell it today you would earn a total of 1,017 from holding Live Oak Bancshares, or generate 36.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HealthStream vs. Live Oak Bancshares,
Performance |
| Timeline |
| HealthStream |
| Live Oak Bancshares, |
HealthStream and Live Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HealthStream and Live Oak
The main advantage of trading using opposite HealthStream and Live Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HealthStream 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.| HealthStream vs. TruBridge | HealthStream vs. National Research Corp | HealthStream vs. Forian Inc | HealthStream vs. HealthEquity |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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