Correlation Between Live Oak and Mndvux

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Can any of the company-specific risk be diversified away by investing in both Live Oak and Mndvux 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 Mndvux 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 Mndvux, you can compare the effects of market volatilities on Live Oak and Mndvux 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 Mndvux. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Oak and Mndvux.

Diversification Opportunities for Live Oak and Mndvux

0.84
  Correlation Coefficient

Very poor diversification

The 3 months correlation between LIVE and Mndvux is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Live Oak Health and Mndvux in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mndvux 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 Mndvux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mndvux has no effect on the direction of Live Oak i.e., Live Oak and Mndvux go up and down completely randomly.

Pair Corralation between Live Oak and Mndvux

If you would invest  2,061  in Live Oak Health on August 17, 2025 and sell it today you would earn a total of  286.00  from holding Live Oak Health or generate 13.88% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy1.56%
ValuesDaily Returns

Live Oak Health  vs.  Mndvux

 Performance 
       Timeline  
Live Oak Health 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Live Oak Health are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Live Oak showed solid returns over the last few months and may actually be approaching a breakup point.
Mndvux 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Mndvux has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Mndvux is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Live Oak and Mndvux Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Live Oak and Mndvux

The main advantage of trading using opposite Live Oak and Mndvux positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Oak position performs unexpectedly, Mndvux 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 Mndvux will offset losses from the drop in Mndvux's long position.
The idea behind Live Oak Health and Mndvux pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Global Correlations module to find global opportunities by holding instruments from different markets.

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