Correlation Between Angel Oak and Ab New
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Ab New 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 New 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 New Jersey, you can compare the effects of market volatilities on Angel Oak and Ab New 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 New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Ab New.
Diversification Opportunities for Angel Oak and Ab New
Very poor diversification
The 3 months correlation between Angel and ANJAX is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Multi Strategy and Ab New Jersey in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab New Jersey 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 New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab New Jersey has no effect on the direction of Angel Oak i.e., Angel Oak and Ab New go up and down completely randomly.
Pair Corralation between Angel Oak and Ab New
Assuming the 90 days horizon Angel Oak Multi Strategy is expected to generate 0.84 times more return on investment than Ab New. However, Angel Oak Multi Strategy is 1.19 times less risky than Ab New. It trades about 0.1 of its potential returns per unit of risk. Ab New Jersey is currently generating about 0.07 per unit of risk. If you would invest 772.00 in Angel Oak Multi Strategy on August 27, 2024 and sell it today you would earn a total of 82.00 from holding Angel Oak Multi Strategy or generate 10.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Multi Strategy vs. Ab New Jersey
Performance |
| Timeline |
| Angel Oak Multi |
| Ab New Jersey |
Angel Oak and Ab New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Ab New
The main advantage of trading using opposite Angel Oak and Ab New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Ab New 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 New will offset losses from the drop in Ab New's long position.| Angel Oak vs. Applied Finance Explorer | Angel Oak vs. Palm Valley Capital | Angel Oak vs. Lsv Small Cap | Angel Oak vs. Northern Small Cap |
| Ab New vs. Boston Partners Small | Ab New vs. Small Cap Value Series | Ab New vs. Vanguard Small Cap Value | Ab New vs. Pace Smallmedium Value |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |