Correlation Between Global Gold and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Global Gold and Angel 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 Global Gold and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Gold Fund and Angel Oak Financial, you can compare the effects of market volatilities on Global Gold and Angel 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 Global Gold with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Gold and Angel Oak.
Diversification Opportunities for Global Gold and Angel Oak
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Global and Angel is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Global Gold Fund and Angel Oak Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Financial and Global Gold 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 Global Gold Fund are associated (or correlated) with Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Financial has no effect on the direction of Global Gold i.e., Global Gold and Angel Oak go up and down completely randomly.
Pair Corralation between Global Gold and Angel Oak
Assuming the 90 days horizon Global Gold Fund is expected to under-perform the Angel Oak. In addition to that, Global Gold is 9.24 times more volatile than Angel Oak Financial. It trades about -0.26 of its total potential returns per unit of risk. Angel Oak Financial is currently generating about 0.11 per unit of volatility. If you would invest 1,401 in Angel Oak Financial on August 30, 2024 and sell it today you would earn a total of 7.00 from holding Angel Oak Financial or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Gold Fund vs. Angel Oak Financial
Performance |
| Timeline |
| Global Gold Fund |
| Angel Oak Financial |
Global Gold and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Gold and Angel Oak
The main advantage of trading using opposite Global Gold and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Gold position performs unexpectedly, Angel 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 Angel Oak will offset losses from the drop in Angel Oak's long position.| Global Gold vs. First Eagle Gold | Global Gold vs. Aquagold International | Global Gold vs. Morningstar Unconstrained Allocation | Global Gold vs. Thrivent High Yield |
| Angel Oak vs. Vanguard Total Stock | Angel Oak vs. Vanguard 500 Index | Angel Oak vs. Vanguard Total Stock | Angel Oak vs. Vanguard Total Stock |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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