Correlation Between Red Oak and James Aggressive

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

By analyzing existing cross correlation between Red Oak Technology and James Aggressive Allocation, you can compare the effects of market volatilities on Red Oak and James Aggressive 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 Red Oak with a short position of James Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Red Oak and James Aggressive.

Diversification Opportunities for Red Oak and James Aggressive

0.0

Correlation Coefficient

Red Oak  James Aggressive

Pay attention - limited upside

The 3 months correlation between Red and James is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Red Oak Technology and James Aggressive Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on James Aggressive All and Red 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 Red Oak Technology are associated (or correlated) with James Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of James Aggressive All has no effect on the direction of Red Oak i.e., Red Oak and James Aggressive go up and down completely randomly.

Pair Corralation between Red Oak and James Aggressive

If you would invest  4,726  in Red Oak Technology on May 25, 2025 and sell it today you would earn a total of  717.00  from holding Red Oak Technology or generate 15.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Red Oak Technology  vs.  James Aggressive Allocation

Red Oak Technology

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Red Oak Technology are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Red Oak showed solid returns over the last few months and may actually be approaching a breakup point.

James Aggressive All

Risk-Adjusted Performance

Solid

Over the last 90 days James Aggressive Allocation has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, James Aggressive is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Red Oak and James Aggressive

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

The idea behind Red Oak Technology and James Aggressive Allocation 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.