Correlation Between Angel Oak and Omni Small
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Omni Small 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 Omni Small 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 Omni Small Cap Value, you can compare the effects of market volatilities on Angel Oak and Omni Small 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 Omni Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Omni Small.
Diversification Opportunities for Angel Oak and Omni Small
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Angel and Omni is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Multi Strategy and Omni Small Cap Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omni Small Cap 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 Omni Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omni Small Cap has no effect on the direction of Angel Oak i.e., Angel Oak and Omni Small go up and down completely randomly.
Pair Corralation between Angel Oak and Omni Small
Assuming the 90 days horizon Angel Oak Multi Strategy is expected to generate 0.06 times more return on investment than Omni Small. However, Angel Oak Multi Strategy is 17.04 times less risky than Omni Small. It trades about -0.1 of its potential returns per unit of risk. Omni Small Cap Value is currently generating about -0.41 per unit of risk. If you would invest 856.00 in Angel Oak Multi Strategy on September 25, 2024 and sell it today you would lose (2.00) from holding Angel Oak Multi Strategy or give up 0.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Angel Oak Multi Strategy vs. Omni Small Cap Value
Performance |
| Timeline |
| Angel Oak Multi |
| Omni Small Cap |
Angel Oak and Omni Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Omni Small
The main advantage of trading using opposite Angel Oak and Omni Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Omni Small 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 Omni Small will offset losses from the drop in Omni Small's long position.| Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Doubleline Income Solutions | Angel Oak vs. Angel Oak Ultrashort |
| Omni Small vs. Arrow Managed Futures | Omni Small vs. Federated Hermes Inflation | Omni Small vs. Ab Bond Inflation | Omni Small vs. Altegris Futures Evolution |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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