Correlation Between Angel Oak and Franklin International
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Franklin International 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 Franklin International 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 Franklin International Core, you can compare the effects of market volatilities on Angel Oak and Franklin International 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 Franklin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Franklin International.
Diversification Opportunities for Angel Oak and Franklin International
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Angel and Franklin is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Multi Strategy and Franklin International Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin International 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 Franklin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin International has no effect on the direction of Angel Oak i.e., Angel Oak and Franklin International go up and down completely randomly.
Pair Corralation between Angel Oak and Franklin International
Assuming the 90 days horizon Angel Oak Multi Strategy is expected to generate 0.18 times more return on investment than Franklin International. However, Angel Oak Multi Strategy is 5.69 times less risky than Franklin International. It trades about 0.13 of its potential returns per unit of risk. Franklin International Core is currently generating about 0.01 per unit of risk. If you would invest 855.00 in Angel Oak Multi Strategy on September 12, 2024 and sell it today you would earn a total of 3.00 from holding Angel Oak Multi Strategy or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Multi Strategy vs. Franklin International Core
Performance |
| Timeline |
| Angel Oak Multi |
| Franklin International |
Angel Oak and Franklin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Franklin International
The main advantage of trading using opposite Angel Oak and Franklin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Franklin International 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 Franklin International will offset losses from the drop in Franklin International's long position.| Angel Oak vs. Pimco Income Fund | Angel Oak vs. Pimco Income Fund | Angel Oak vs. Pimco Incme Fund | Angel Oak vs. Pimco Income Fund |
| Franklin International vs. Mutual Of America | Franklin International vs. Siit Small Mid | Franklin International vs. Sp Smallcap 600 | Franklin International vs. Aqr Small Cap |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |