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 Multi Strategy is expected to generate 0.17 times more return on investment than Calvert Emerging. However, Angel Oak Multi Strategy is 6.05 times less risky than Calvert Emerging. It trades about -0.06 of its potential returns per unit of risk. Calvert Emerging Markets is currently generating about -0.06 per unit of risk. If you would invest 860.00 in Angel Oak Multi Strategy on August 31, 2024 and sell it today you would lose (4.00) from holding Angel Oak Multi Strategy or give up 0.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| 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. Blackrock Health Sciences | Angel Oak vs. Highland Longshort Healthcare | Angel Oak vs. Baron Health Care | Angel Oak vs. Lord Abbett Health |
| Calvert Emerging vs. Goldman Sachs Short Term | Calvert Emerging vs. Vanguard Institutional Short Term | Calvert Emerging vs. Franklin Federal Limited Term | Calvert Emerging vs. Sterling Capital Short |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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