Correlation Between Angel Oak and Calvert Emerging
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Calvert 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 Calvert 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 Calvert Emerging Markets, you can compare the effects of market volatilities on Angel Oak and Calvert 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 Calvert Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Calvert Emerging.
Diversification Opportunities for Angel Oak and Calvert Emerging
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Angel and Calvert is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Multi Strategy and Calvert Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert 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 Calvert Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Emerging Markets has no effect on the direction of Angel Oak i.e., Angel Oak and Calvert Emerging go up and down completely randomly.
Pair Corralation between Angel Oak and Calvert Emerging
Assuming the 90 days horizon Angel Oak is expected to generate 2.0 times less return on investment than Calvert Emerging. But when comparing it to its historical volatility, Angel Oak Multi Strategy is 4.24 times less risky than Calvert Emerging. It trades about 0.14 of its potential returns per unit of risk. Calvert Emerging Markets is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 998.00 in Calvert Emerging Markets on September 4, 2024 and sell it today you would earn a total of 176.00 from holding Calvert Emerging Markets or generate 17.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 85.75% |
| Values | Daily Returns |
Angel Oak Multi Strategy vs. Calvert Emerging Markets
Performance |
| Timeline |
| Angel Oak Multi |
| Calvert Emerging Markets |
Angel Oak and Calvert Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Calvert Emerging
The main advantage of trading using opposite Angel Oak and Calvert Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Calvert 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 Calvert Emerging will offset losses from the drop in Calvert Emerging's long position.| Angel Oak vs. Rbb Fund | Angel Oak vs. Falcon Focus Scv | Angel Oak vs. Sei Daily Income | Angel Oak vs. Acm Dynamic Opportunity |
| Calvert Emerging vs. Calvert Developed Market | Calvert Emerging vs. Calvert Developed Market | Calvert Emerging vs. Calvert Short Duration | Calvert Emerging vs. Calvert International Responsible |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| 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 |