Correlation Between Income Growth and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Income Growth 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 Income Growth and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Income Growth Fund and Angel Oak Flexible, you can compare the effects of market volatilities on Income Growth 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 Income Growth with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Income Growth and Angel Oak.
Diversification Opportunities for Income Growth and Angel Oak
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Income and Angel is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Income Growth Fund and Angel Oak Flexible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Flexible and Income Growth 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 Income Growth 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 Flexible has no effect on the direction of Income Growth i.e., Income Growth and Angel Oak go up and down completely randomly.
Pair Corralation between Income Growth and Angel Oak
If you would invest 3,718 in Income Growth Fund on September 1, 2024 and sell it today you would earn a total of 230.00 from holding Income Growth Fund or generate 6.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
Income Growth Fund vs. Angel Oak Flexible
Performance |
| Timeline |
| Income Growth |
| Angel Oak Flexible |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Income Growth and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Income Growth and Angel Oak
The main advantage of trading using opposite Income Growth and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Income Growth 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.| Income Growth vs. Ultra Fund I | Income Growth vs. Value Fund I | Income Growth vs. Equity Growth Fund | Income Growth vs. International Growth Fund |
| Angel Oak vs. Victory Strategic Allocation | Angel Oak vs. T Rowe Price | Angel Oak vs. Tax Managed Large Cap | Angel Oak vs. Touchstone Large Cap |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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