Correlation Between Angel Oak and The Arbitrage
Can any of the company-specific risk be diversified away by investing in both Angel Oak and The Arbitrage 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 The Arbitrage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Angel Oak Multi Strategy and The Arbitrage Event Driven, you can compare the effects of market volatilities on Angel Oak and The Arbitrage 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 The Arbitrage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and The Arbitrage.
Diversification Opportunities for Angel Oak and The Arbitrage
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Angel and THE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Multi Strategy and The Arbitrage Event Driven in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arbitrage Event 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 Multi Strategy are associated (or correlated) with The Arbitrage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arbitrage Event has no effect on the direction of Angel Oak i.e., Angel Oak and The Arbitrage go up and down completely randomly.
Pair Corralation between Angel Oak and The Arbitrage
If you would invest 827.00 in Angel Oak Multi Strategy on September 3, 2024 and sell it today you would earn a total of 31.00 from holding Angel Oak Multi Strategy or generate 3.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Angel Oak Multi Strategy vs. The Arbitrage Event Driven
Performance |
| Timeline |
| Angel Oak Multi |
| Arbitrage Event |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Angel Oak and The Arbitrage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and The Arbitrage
The main advantage of trading using opposite Angel Oak and The Arbitrage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, The Arbitrage 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 The Arbitrage will offset losses from the drop in The Arbitrage's long position.| Angel Oak vs. T Rowe Price | Angel Oak vs. T Rowe Price | Angel Oak vs. T Rowe Price | Angel Oak vs. Transamerica Asset Allocation |
| The Arbitrage vs. Jhancock Short Duration | The Arbitrage vs. Siit Ultra Short | The Arbitrage vs. Aqr Long Short Equity | The Arbitrage vs. Maryland Short Term Tax Free |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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