Correlation Between Angel Oak and First Investors
Can any of the company-specific risk be diversified away by investing in both Angel Oak and First Investors 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 First Investors 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 First Investors Growth, you can compare the effects of market volatilities on Angel Oak and First Investors 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 First Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and First Investors.
Diversification Opportunities for Angel Oak and First Investors
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Angel and First is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Multi Strategy and First Investors Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Investors Growth 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 First Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Investors Growth has no effect on the direction of Angel Oak i.e., Angel Oak and First Investors go up and down completely randomly.
Pair Corralation between Angel Oak and First Investors
Assuming the 90 days horizon Angel Oak is expected to generate 53.57 times less return on investment than First Investors. But when comparing it to its historical volatility, Angel Oak Multi Strategy is 7.0 times less risky than First Investors. It trades about 0.04 of its potential returns per unit of risk. First Investors Growth is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 1,607 in First Investors Growth on September 1, 2024 and sell it today you would earn a total of 108.00 from holding First Investors Growth or generate 6.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Angel Oak Multi Strategy vs. First Investors Growth
Performance |
| Timeline |
| Angel Oak Multi |
| First Investors Growth |
Angel Oak and First Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and First Investors
The main advantage of trading using opposite Angel Oak and First Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, First Investors 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 First Investors will offset losses from the drop in First Investors' long position.| Angel Oak vs. Europac Gold Fund | Angel Oak vs. International Investors Gold | Angel Oak vs. Sprott Gold Equity | Angel Oak vs. Great West Goldman Sachs |
| First Investors vs. Gabelli Convertible And | First Investors vs. Virtus Convertible | First Investors vs. Fidelity Sai Convertible | First Investors vs. Absolute Convertible Arbitrage |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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