Correlation Between Angel Oak and Catalystsmh High
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Catalystsmh High 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 Catalystsmh High 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 Catalystsmh High Income, you can compare the effects of market volatilities on Angel Oak and Catalystsmh High 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 Catalystsmh High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Catalystsmh High.
Diversification Opportunities for Angel Oak and Catalystsmh High
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Angel and Catalystsmh is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Multi Strategy and Catalystsmh High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystsmh High Income 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 Catalystsmh High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystsmh High Income has no effect on the direction of Angel Oak i.e., Angel Oak and Catalystsmh High go up and down completely randomly.
Pair Corralation between Angel Oak and Catalystsmh High
Assuming the 90 days horizon Angel Oak is expected to generate 9.05 times less return on investment than Catalystsmh High. But when comparing it to its historical volatility, Angel Oak Multi Strategy is 1.65 times less risky than Catalystsmh High. It trades about 0.03 of its potential returns per unit of risk. Catalystsmh High Income is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 370.00 in Catalystsmh High Income on November 3, 2024 and sell it today you would earn a total of 4.00 from holding Catalystsmh High Income or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Multi Strategy vs. Catalystsmh High Income
Performance |
| Timeline |
| Angel Oak Multi |
| Catalystsmh High Income |
Angel Oak and Catalystsmh High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Catalystsmh High
The main advantage of trading using opposite Angel Oak and Catalystsmh High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Catalystsmh High 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 Catalystsmh High will offset losses from the drop in Catalystsmh High's long position.| Angel Oak vs. Rbc Emerging Markets | Angel Oak vs. Calvert Emerging Markets | Angel Oak vs. Templeton Emerging Markets | Angel Oak vs. Transamerica Emerging Markets |
| Catalystsmh High vs. Small Pany Growth | Catalystsmh High vs. Fxybjx | Catalystsmh High vs. Fkhemx | Catalystsmh High vs. Tax Managed Large 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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