Correlation Between Angel Oak and Artisan Emerging
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Artisan Emerging 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 Artisan Emerging 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 Artisan Emerging Markets, you can compare the effects of market volatilities on Angel Oak and Artisan Emerging 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 Artisan Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Artisan Emerging.
Diversification Opportunities for Angel Oak and Artisan Emerging
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Angel and Artisan is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Multi Strategy and Artisan Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Emerging Markets 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 Artisan Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Emerging Markets has no effect on the direction of Angel Oak i.e., Angel Oak and Artisan Emerging go up and down completely randomly.
Pair Corralation between Angel Oak and Artisan Emerging
Assuming the 90 days horizon Angel Oak Multi Strategy is expected to generate 0.8 times more return on investment than Artisan Emerging. However, Angel Oak Multi Strategy is 1.24 times less risky than Artisan Emerging. It trades about 0.19 of its potential returns per unit of risk. Artisan Emerging Markets is currently generating about 0.13 per unit of risk. If you would invest 822.00 in Angel Oak Multi Strategy on August 29, 2024 and sell it today you would earn a total of 34.00 from holding Angel Oak Multi Strategy or generate 4.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Multi Strategy vs. Artisan Emerging Markets
Performance |
| Timeline |
| Angel Oak Multi |
| Artisan Emerging Markets |
Angel Oak and Artisan Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Artisan Emerging
The main advantage of trading using opposite Angel Oak and Artisan Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Artisan Emerging 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 Artisan Emerging will offset losses from the drop in Artisan Emerging's long position.| Angel Oak vs. Pimco Income Fund | Angel Oak vs. HUMANA INC | Angel Oak vs. Aquagold International | Angel Oak vs. Barloworld Ltd ADR |
| Artisan Emerging vs. Fidelity New Markets | Artisan Emerging vs. HUMANA INC | Artisan Emerging vs. Aquagold International | Artisan Emerging vs. Barloworld Ltd ADR |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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