Correlation Between Angel Oak and Gabelli Global
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Gabelli Global 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 Gabelli Global 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 The Gabelli Global, you can compare the effects of market volatilities on Angel Oak and Gabelli Global 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 Gabelli Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Gabelli Global.
Diversification Opportunities for Angel Oak and Gabelli Global
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Angel and Gabelli is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Multi Strategy and The Gabelli Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Global 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 Gabelli Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Global has no effect on the direction of Angel Oak i.e., Angel Oak and Gabelli Global go up and down completely randomly.
Pair Corralation between Angel Oak and Gabelli Global
Assuming the 90 days horizon Angel Oak is expected to generate 3.0 times less return on investment than Gabelli Global. But when comparing it to its historical volatility, Angel Oak Multi Strategy is 3.69 times less risky than Gabelli Global. It trades about 0.25 of its potential returns per unit of risk. The Gabelli Global is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 3,158 in The Gabelli Global on September 13, 2024 and sell it today you would earn a total of 58.00 from holding The Gabelli Global or generate 1.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Angel Oak Multi Strategy vs. The Gabelli Global
Performance |
| Timeline |
| Angel Oak Multi |
| Gabelli Global |
Angel Oak and Gabelli Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Gabelli Global
The main advantage of trading using opposite Angel Oak and Gabelli Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Gabelli Global 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 Gabelli Global will offset losses from the drop in Gabelli Global's long position.| Angel Oak vs. Pace High Yield | Angel Oak vs. Neuberger Berman Income | Angel Oak vs. Virtus High Yield | Angel Oak vs. City National Rochdale |
| Gabelli Global vs. Washington Mutual Investors | Gabelli Global vs. Guidemark Large Cap | Gabelli Global vs. T Rowe Price | Gabelli Global vs. Morningstar Unconstrained Allocation |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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