Correlation Between Federated Kaufmann and Live Oak

Can any of the company-specific risk be diversified away by investing in both Federated Kaufmann and Live Oak 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 Federated Kaufmann and Live Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Federated Kaufmann Large and Live Oak Health, you can compare the effects of market volatilities on Federated Kaufmann and Live Oak 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 Federated Kaufmann with a short position of Live Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Kaufmann and Live Oak.

Diversification Opportunities for Federated Kaufmann and Live Oak

0.73

Correlation Coefficient

Federated Kaufmann  Live Oak

Poor diversification

The 3 months correlation between Federated and Live is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Federated Kaufmann Large and Live Oak Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Live Oak Health and Federated Kaufmann 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 Federated Kaufmann Large are associated (or correlated) with Live Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Live Oak Health has no effect on the direction of Federated Kaufmann i.e., Federated Kaufmann and Live Oak go up and down completely randomly.

Pair Corralation between Federated Kaufmann and Live Oak

Assuming the 90 days horizon Federated Kaufmann Large is expected to generate 0.7 times more return on investment than Live Oak. However, Federated Kaufmann Large is 1.43 times less risky than Live Oak. It trades about 0.21 of its potential returns per unit of risk. Live Oak Health is currently generating about 0.07 per unit of risk. If you would invest  1,787  in Federated Kaufmann Large on July 13, 2025 and sell it today you would earn a total of  172.00  from holding Federated Kaufmann Large or generate 9.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.46%
Values	Daily Returns

Federated Kaufmann Large  vs.  Live Oak Health

Federated Kaufmann Large

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Federated Kaufmann Large are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Federated Kaufmann may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Live Oak Health

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Live Oak Health are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Live Oak is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Federated Kaufmann and Live Oak

The main advantage of trading using opposite Federated Kaufmann and Live Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Kaufmann position performs unexpectedly, Live Oak 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 Live Oak will offset losses from the drop in Live Oak's long position.

The idea behind Federated Kaufmann Large and Live Oak Health 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.