Correlation Between Live Oak and Matrix Advisors
Can any of the company-specific risk be diversified away by investing in both Live Oak and Matrix Advisors 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 Live Oak and Matrix Advisors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Live Oak Health and Matrix Advisors Dividend, you can compare the effects of market volatilities on Live Oak and Matrix Advisors 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 Live Oak with a short position of Matrix Advisors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Oak and Matrix Advisors.
Diversification Opportunities for Live Oak and Matrix Advisors
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Live and Matrix is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Live Oak Health and Matrix Advisors Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matrix Advisors Dividend and Live Oak 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 Live Oak Health are associated (or correlated) with Matrix Advisors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matrix Advisors Dividend has no effect on the direction of Live Oak i.e., Live Oak and Matrix Advisors go up and down completely randomly.
Pair Corralation between Live Oak and Matrix Advisors
Assuming the 90 days horizon Live Oak Health is expected to generate 1.52 times more return on investment than Matrix Advisors. However, Live Oak is 1.52 times more volatile than Matrix Advisors Dividend. It trades about 0.11 of its potential returns per unit of risk. Matrix Advisors Dividend is currently generating about 0.05 per unit of risk. If you would invest 2,102 in Live Oak Health on July 25, 2025 and sell it today you would earn a total of 131.00 from holding Live Oak Health or generate 6.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Oak Health vs. Matrix Advisors Dividend
Performance |
| Timeline |
| Live Oak Health |
| Matrix Advisors Dividend |
Live Oak and Matrix Advisors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Oak and Matrix Advisors
The main advantage of trading using opposite Live Oak and Matrix Advisors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Oak position performs unexpectedly, Matrix Advisors 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 Matrix Advisors will offset losses from the drop in Matrix Advisors' long position.| Live Oak vs. Wesmark Tactical Opportunity | Live Oak vs. T Rowe Price | Live Oak vs. Paradigm Value Fund | Live Oak vs. Nuveen Large Cap |
| Matrix Advisors vs. Appleseed Fund Appleseed | Matrix Advisors vs. T Rowe Price | Matrix Advisors vs. Large Cap Equity | Matrix Advisors vs. Live Oak Health |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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