Correlation Between Live Oak and Advent Claymore
Can any of the company-specific risk be diversified away by investing in both Live Oak and Advent Claymore 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 Advent Claymore 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 Advent Claymore Convertible, you can compare the effects of market volatilities on Live Oak and Advent Claymore 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 Advent Claymore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Oak and Advent Claymore.
Diversification Opportunities for Live Oak and Advent Claymore
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Live and Advent is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Live Oak Health and Advent Claymore Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advent Claymore Conv 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 Advent Claymore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advent Claymore Conv has no effect on the direction of Live Oak i.e., Live Oak and Advent Claymore go up and down completely randomly.
Pair Corralation between Live Oak and Advent Claymore
Assuming the 90 days horizon Live Oak Health is expected to generate 1.09 times more return on investment than Advent Claymore. However, Live Oak is 1.09 times more volatile than Advent Claymore Convertible. It trades about 0.3 of its potential returns per unit of risk. Advent Claymore Convertible is currently generating about 0.03 per unit of risk. If you would invest 2,110 in Live Oak Health on August 31, 2025 and sell it today you would earn a total of 339.00 from holding Live Oak Health or generate 16.07% 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. Advent Claymore Convertible
Performance |
| Timeline |
| Live Oak Health |
| Advent Claymore Conv |
Live Oak and Advent Claymore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Oak and Advent Claymore
The main advantage of trading using opposite Live Oak and Advent Claymore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Oak position performs unexpectedly, Advent Claymore 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 Advent Claymore will offset losses from the drop in Advent Claymore's long position.| Live Oak vs. Blackrock Health Sciences | Live Oak vs. Fidelity Advisor Health | Live Oak vs. Highland Longshort Healthcare | Live Oak vs. Alphacentric Lifesci Healthcare |
| Advent Claymore vs. T Rowe Price | Advent Claymore vs. Legg Mason Partners | Advent Claymore vs. Sterling Capital Behavioral | Advent Claymore vs. Rbc 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |