Correlation Between Angel Oak and Ab Minnesota
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Ab Minnesota 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 Ab Minnesota 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 Ab Minnesota Portfolio, you can compare the effects of market volatilities on Angel Oak and Ab Minnesota 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 Ab Minnesota. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Ab Minnesota.
Diversification Opportunities for Angel Oak and Ab Minnesota
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Angel and AMNAX is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Multi Strategy and Ab Minnesota Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Minnesota Portfolio 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 Ab Minnesota. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Minnesota Portfolio has no effect on the direction of Angel Oak i.e., Angel Oak and Ab Minnesota go up and down completely randomly.
Pair Corralation between Angel Oak and Ab Minnesota
Assuming the 90 days horizon Angel Oak Multi Strategy is expected to generate 0.88 times more return on investment than Ab Minnesota. However, Angel Oak Multi Strategy is 1.13 times less risky than Ab Minnesota. It trades about 0.03 of its potential returns per unit of risk. Ab Minnesota Portfolio is currently generating about -0.05 per unit of risk. If you would invest 852.00 in Angel Oak Multi Strategy on November 1, 2024 and sell it today you would earn a total of 1.00 from holding Angel Oak Multi Strategy or generate 0.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Multi Strategy vs. Ab Minnesota Portfolio
Performance |
| Timeline |
| Angel Oak Multi |
| Ab Minnesota Portfolio |
Angel Oak and Ab Minnesota Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Ab Minnesota
The main advantage of trading using opposite Angel Oak and Ab Minnesota positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Ab Minnesota 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 Ab Minnesota will offset losses from the drop in Ab Minnesota's long position.| Angel Oak vs. Principal Lifetime Hybrid | Angel Oak vs. Growth Allocation Fund | Angel Oak vs. Enhanced Large Pany | Angel Oak vs. Oppenheimer Global Allocation |
| Ab Minnesota vs. Morgan Stanley Emerging | Ab Minnesota vs. Commodities Strategy Fund | Ab Minnesota vs. Angel Oak Multi Strategy | Ab Minnesota vs. Western Assets Emerging |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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