Correlation Between Angel Oak and Mfs International
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Mfs International 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 Mfs International 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 Mfs International New, you can compare the effects of market volatilities on Angel Oak and Mfs International 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 Mfs International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Mfs International.
Diversification Opportunities for Angel Oak and Mfs International
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Angel and Mfs is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Multi Strategy and Mfs International New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs International New 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 Mfs International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs International New has no effect on the direction of Angel Oak i.e., Angel Oak and Mfs International go up and down completely randomly.
Pair Corralation between Angel Oak and Mfs International
Assuming the 90 days horizon Angel Oak Multi Strategy is expected to generate 0.2 times more return on investment than Mfs International. However, Angel Oak Multi Strategy is 4.9 times less risky than Mfs International. It trades about 0.04 of its potential returns per unit of risk. Mfs International New is currently generating about -0.03 per unit of risk. If you would invest 857.00 in Angel Oak Multi Strategy on September 1, 2024 and sell it today you would earn a total of 1.00 from holding Angel Oak Multi Strategy or generate 0.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Angel Oak Multi Strategy vs. Mfs International New
Performance |
| Timeline |
| Angel Oak Multi |
| Mfs International New |
Angel Oak and Mfs International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Mfs International
The main advantage of trading using opposite Angel Oak and Mfs International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Mfs International 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 Mfs International will offset losses from the drop in Mfs International'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 |
| Mfs International vs. Mfs Prudent Investor | Mfs International vs. Mfs Prudent Investor | Mfs International vs. Mfs Prudent Investor | Mfs International vs. Mfs Prudent Investor |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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