Correlation Between Live Oak and Vanguard Health
Can any of the company-specific risk be diversified away by investing in both Live Oak and Vanguard Health 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 Vanguard Health 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 Vanguard Health Care, you can compare the effects of market volatilities on Live Oak and Vanguard Health 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 Vanguard Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Oak and Vanguard Health.
Diversification Opportunities for Live Oak and Vanguard Health
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Live and Vanguard is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Live Oak Health and Vanguard Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Health Care 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 Vanguard Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Health Care has no effect on the direction of Live Oak i.e., Live Oak and Vanguard Health go up and down completely randomly.
Pair Corralation between Live Oak and Vanguard Health
Assuming the 90 days horizon Live Oak is expected to generate 3.69 times less return on investment than Vanguard Health. In addition to that, Live Oak is 1.01 times more volatile than Vanguard Health Care. It trades about 0.03 of its total potential returns per unit of risk. Vanguard Health Care is currently generating about 0.11 per unit of volatility. If you would invest 12,088 in Vanguard Health Care on May 27, 2025 and sell it today you would earn a total of 745.00 from holding Vanguard Health Care or generate 6.16% 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. Vanguard Health Care
Performance |
| Timeline |
| Live Oak Health |
| Vanguard Health Care |
Live Oak and Vanguard Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Oak and Vanguard Health
The main advantage of trading using opposite Live Oak and Vanguard Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Oak position performs unexpectedly, Vanguard Health 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 Vanguard Health will offset losses from the drop in Vanguard Health'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 |
| Vanguard Health vs. Vanguard Information Technology | Vanguard Health vs. Vanguard Sumer Staples | Vanguard Health vs. Vanguard Sumer Discretionary | Vanguard Health vs. Vanguard Financials Index |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |