Correlation Between Angel Oak and Oakhurst Fixed
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Oakhurst Fixed 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 Oakhurst Fixed 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 Oakhurst Fixed Income, you can compare the effects of market volatilities on Angel Oak and Oakhurst Fixed 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 Oakhurst Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Oakhurst Fixed.
Diversification Opportunities for Angel Oak and Oakhurst Fixed
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Angel and Oakhurst is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Multi Strategy and Oakhurst Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakhurst Fixed 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 Oakhurst Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakhurst Fixed Income has no effect on the direction of Angel Oak i.e., Angel Oak and Oakhurst Fixed go up and down completely randomly.
Pair Corralation between Angel Oak and Oakhurst Fixed
Assuming the 90 days horizon Angel Oak is expected to generate 3.6 times less return on investment than Oakhurst Fixed. But when comparing it to its historical volatility, Angel Oak Multi Strategy is 2.44 times less risky than Oakhurst Fixed. It trades about 0.09 of its potential returns per unit of risk. Oakhurst Fixed Income is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 875.00 in Oakhurst Fixed Income on September 4, 2024 and sell it today you would earn a total of 7.00 from holding Oakhurst Fixed Income or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Angel Oak Multi Strategy vs. Oakhurst Fixed Income
Performance |
| Timeline |
| Angel Oak Multi |
| Oakhurst Fixed Income |
Angel Oak and Oakhurst Fixed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Oakhurst Fixed
The main advantage of trading using opposite Angel Oak and Oakhurst Fixed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Oakhurst Fixed 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 Oakhurst Fixed will offset losses from the drop in Oakhurst Fixed's long position.| Angel Oak vs. Rbb Fund | Angel Oak vs. Falcon Focus Scv | Angel Oak vs. Sei Daily Income | Angel Oak vs. Acm Dynamic Opportunity |
| Oakhurst Fixed vs. Templeton Emerging Markets | Oakhurst Fixed vs. Angel Oak Multi Strategy | Oakhurst Fixed vs. Legg Mason Partners | Oakhurst Fixed vs. T Rowe Price |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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