Correlation Between Angel Oak and Western Asset
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Western Asset 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 Angel Oak and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Angel Oak Flexible and Western Asset High, you can compare the effects of market volatilities on Angel Oak and Western Asset 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 Angel Oak with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Western Asset.
Diversification Opportunities for Angel Oak and Western Asset
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Angel and Western is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Flexible and Western Asset High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset High and Angel 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 Angel Oak Flexible are associated (or correlated) with Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset High has no effect on the direction of Angel Oak i.e., Angel Oak and Western Asset go up and down completely randomly.
Pair Corralation between Angel Oak and Western Asset
If you would invest 706.00 in Western Asset High on September 13, 2024 and sell it today you would earn a total of 2.00 from holding Western Asset High or generate 0.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Angel Oak Flexible vs. Western Asset High
Performance |
| Timeline |
| Angel Oak Flexible |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Western Asset High |
Angel Oak and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Western Asset
The main advantage of trading using opposite Angel Oak and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| Angel Oak vs. Western Asset Diversified | Angel Oak vs. Global Diversified Income | Angel Oak vs. Lord Abbett Diversified | Angel Oak vs. Fulcrum Diversified Absolute |
| Western Asset vs. Guggenheim Risk Managed | Western Asset vs. Simt Real Estate | Western Asset vs. Redwood Real Estate | Western Asset vs. Vy Clarion Real |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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