Correlation Between Live Oak and Simt Multi
Can any of the company-specific risk be diversified away by investing in both Live Oak and Simt Multi 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 Simt Multi 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 Simt Multi Asset Accumulation, you can compare the effects of market volatilities on Live Oak and Simt Multi 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 Simt Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Oak and Simt Multi.
Diversification Opportunities for Live Oak and Simt Multi
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Live and Simt is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Live Oak Health and Simt Multi Asset Accumulation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset 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 Simt Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Multi Asset has no effect on the direction of Live Oak i.e., Live Oak and Simt Multi go up and down completely randomly.
Pair Corralation between Live Oak and Simt Multi
Assuming the 90 days horizon Live Oak is expected to generate 1.18 times less return on investment than Simt Multi. In addition to that, Live Oak is 2.43 times more volatile than Simt Multi Asset Accumulation. It trades about 0.1 of its total potential returns per unit of risk. Simt Multi Asset Accumulation is currently generating about 0.28 per unit of volatility. If you would invest 692.00 in Simt Multi Asset Accumulation on April 19, 2025 and sell it today you would earn a total of 47.00 from holding Simt Multi Asset Accumulation or generate 6.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Live Oak Health vs. Simt Multi Asset Accumulation
Performance |
| Timeline |
| Live Oak Health |
| Simt Multi Asset |
Live Oak and Simt Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Oak and Simt Multi
The main advantage of trading using opposite Live Oak and Simt Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Oak position performs unexpectedly, Simt Multi 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 Simt Multi will offset losses from the drop in Simt Multi's long position.| Live Oak vs. Black Oak Emerging | Live Oak vs. Pin Oak Equity | Live Oak vs. Red Oak Technology | Live Oak vs. White Oak Select |
| Simt Multi vs. Semiconductor Ultrasector Profund | Simt Multi vs. Doubleline Emerging Markets | Simt Multi vs. Vanguard Global Equity | Simt Multi vs. Shelton Emerging Markets |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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