Correlation Between Angel Oak and Eagle Mlp
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Eagle Mlp 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 Eagle Mlp 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 Eagle Mlp Strategy, you can compare the effects of market volatilities on Angel Oak and Eagle Mlp 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 Eagle Mlp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Eagle Mlp.
Diversification Opportunities for Angel Oak and Eagle Mlp
Excellent diversification
The 3 months correlation between Angel and Eagle is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Multi Strategy and Eagle Mlp Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Mlp Strategy 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 Eagle Mlp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Mlp Strategy has no effect on the direction of Angel Oak i.e., Angel Oak and Eagle Mlp go up and down completely randomly.
Pair Corralation between Angel Oak and Eagle Mlp
Assuming the 90 days horizon Angel Oak Multi Strategy is expected to under-perform the Eagle Mlp. But the mutual fund apears to be less risky and, when comparing its historical volatility, Angel Oak Multi Strategy is 6.92 times less risky than Eagle Mlp. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Eagle Mlp Strategy is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 941.00 in Eagle Mlp Strategy on August 25, 2024 and sell it today you would earn a total of 151.00 from holding Eagle Mlp Strategy or generate 16.05% 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. Eagle Mlp Strategy
Performance |
| Timeline |
| Angel Oak Multi |
| Eagle Mlp Strategy |
Angel Oak and Eagle Mlp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Eagle Mlp
The main advantage of trading using opposite Angel Oak and Eagle Mlp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Eagle Mlp 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 Eagle Mlp will offset losses from the drop in Eagle Mlp'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 |
| Eagle Mlp vs. Eagle Mlp Strategy | Eagle Mlp vs. Eagle Mlp Strategy | Eagle Mlp vs. Calamos Strategic Total | Eagle Mlp vs. Vaughan Nelson Select |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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