Correlation Between Live Oak and Aggressive Growth
Can any of the company-specific risk be diversified away by investing in both Live Oak and Aggressive Growth 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 Aggressive Growth 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 Aggressive Growth Fund, you can compare the effects of market volatilities on Live Oak and Aggressive Growth 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 Aggressive Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Oak and Aggressive Growth.
Diversification Opportunities for Live Oak and Aggressive Growth
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Live and Aggressive is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Live Oak Health and Aggressive Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aggressive Growth 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 Aggressive Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aggressive Growth has no effect on the direction of Live Oak i.e., Live Oak and Aggressive Growth go up and down completely randomly.
Pair Corralation between Live Oak and Aggressive Growth
Assuming the 90 days horizon Live Oak is expected to generate 21.15 times less return on investment than Aggressive Growth. In addition to that, Live Oak is 1.09 times more volatile than Aggressive Growth Fund. It trades about 0.01 of its total potential returns per unit of risk. Aggressive Growth Fund is currently generating about 0.2 per unit of volatility. If you would invest 6,986 in Aggressive Growth Fund on June 12, 2025 and sell it today you would earn a total of 775.00 from holding Aggressive Growth Fund or generate 11.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Live Oak Health vs. Aggressive Growth Fund
Performance |
| Timeline |
| Live Oak Health |
| Aggressive Growth |
Live Oak and Aggressive Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Oak and Aggressive Growth
The main advantage of trading using opposite Live Oak and Aggressive Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Oak position performs unexpectedly, Aggressive Growth 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 Aggressive Growth will offset losses from the drop in Aggressive Growth'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 |
| Aggressive Growth vs. Schwab Health Care | Aggressive Growth vs. Baron Health Care | Aggressive Growth vs. Invesco Global Health | Aggressive Growth 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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