Correlation Between Angel Oak and Mainstay Candriam
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Mainstay Candriam 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 Candriam 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 Candriam Emerging, you can compare the effects of market volatilities on Angel Oak and Mainstay Candriam 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 Candriam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Mainstay Candriam.
Diversification Opportunities for Angel Oak and Mainstay Candriam
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Angel and Mainstay is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Multi Strategy and Mainstay Candriam Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Candriam 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 Candriam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Candriam has no effect on the direction of Angel Oak i.e., Angel Oak and Mainstay Candriam go up and down completely randomly.
Pair Corralation between Angel Oak and Mainstay Candriam
Assuming the 90 days horizon Angel Oak Multi Strategy is expected to generate 0.17 times more return on investment than Mainstay Candriam. However, Angel Oak Multi Strategy is 5.77 times less risky than Mainstay Candriam. It trades about 0.19 of its potential returns per unit of risk. Mainstay Candriam Emerging is currently generating about 0.03 per unit of risk. If you would invest 824.00 in Angel Oak Multi Strategy on September 1, 2024 and sell it today you would earn a total of 34.00 from holding Angel Oak Multi Strategy or generate 4.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Angel Oak Multi Strategy vs. Mainstay Candriam Emerging
Performance |
| Timeline |
| Angel Oak Multi |
| Mainstay Candriam |
Angel Oak and Mainstay Candriam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Mainstay Candriam
The main advantage of trading using opposite Angel Oak and Mainstay Candriam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Mainstay Candriam 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 Candriam will offset losses from the drop in Mainstay Candriam's 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 |
| Mainstay Candriam vs. Mainstay Large Cap | Mainstay Candriam vs. Mainstay Large Cap | Mainstay Candriam vs. Mainstay Large Cap | Mainstay Candriam vs. Mainstay 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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