Correlation Between Angel Oak and Mainstay Map
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Mainstay Map 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 Mainstay Map 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 Mainstay Map Equity, you can compare the effects of market volatilities on Angel Oak and Mainstay Map 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 Mainstay Map. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Mainstay Map.
Diversification Opportunities for Angel Oak and Mainstay Map
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Angel and Mainstay is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Multi Strategy and Mainstay Map Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Map Equity 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 Mainstay Map. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Map Equity has no effect on the direction of Angel Oak i.e., Angel Oak and Mainstay Map go up and down completely randomly.
Pair Corralation between Angel Oak and Mainstay Map
Assuming the 90 days horizon Angel Oak Multi Strategy is expected to generate 0.13 times more return on investment than Mainstay Map. However, Angel Oak Multi Strategy is 7.77 times less risky than Mainstay Map. It trades about -0.04 of its potential returns per unit of risk. Mainstay Map Equity is currently generating about -0.1 per unit of risk. If you would invest 860.00 in Angel Oak Multi Strategy on September 13, 2024 and sell it today you would lose (2.00) from holding Angel Oak Multi Strategy or give up 0.23% of portfolio value 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. Mainstay Map Equity
Performance |
| Timeline |
| Angel Oak Multi |
| Mainstay Map Equity |
Angel Oak and Mainstay Map Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Mainstay Map
The main advantage of trading using opposite Angel Oak and Mainstay Map positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Mainstay Map 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 Mainstay Map will offset losses from the drop in Mainstay Map'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 |
| Mainstay Map vs. Vy Jpmorgan Emerging | Mainstay Map vs. Angel Oak Multi Strategy | Mainstay Map vs. Shelton Emerging Markets | Mainstay Map vs. Pnc Emerging Markets |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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