Correlation Between Angel Oak and Pacific Funds
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Pacific Funds 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 Pacific Funds 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 Pacific Funds Strategic, you can compare the effects of market volatilities on Angel Oak and Pacific Funds 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 Pacific Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Pacific Funds.
Diversification Opportunities for Angel Oak and Pacific Funds
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Angel and Pacific is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Multi Strategy and Pacific Funds Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacific Funds Strategic 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 Pacific Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacific Funds Strategic has no effect on the direction of Angel Oak i.e., Angel Oak and Pacific Funds go up and down completely randomly.
Pair Corralation between Angel Oak and Pacific Funds
Assuming the 90 days horizon Angel Oak is expected to generate 1.2 times less return on investment than Pacific Funds. But when comparing it to its historical volatility, Angel Oak Multi Strategy is 1.19 times less risky than Pacific Funds. It trades about 0.14 of its potential returns per unit of risk. Pacific Funds Strategic is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 936.00 in Pacific Funds Strategic on September 2, 2024 and sell it today you would earn a total of 120.00 from holding Pacific Funds Strategic or generate 12.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Multi Strategy vs. Pacific Funds Strategic
Performance |
| Timeline |
| Angel Oak Multi |
| Pacific Funds Strategic |
Angel Oak and Pacific Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Pacific Funds
The main advantage of trading using opposite Angel Oak and Pacific Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Pacific Funds 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 Pacific Funds will offset losses from the drop in Pacific Funds' long position.| Angel Oak vs. Calvert Developed Market | Angel Oak vs. Origin Emerging Markets | Angel Oak vs. Aqr Sustainable Long Short | Angel Oak vs. Vanguard Developed Markets |
| Pacific Funds vs. Msif Real Estate | Pacific Funds vs. Deutsche Real Estate | Pacific Funds vs. Fidelity Real Estate | Pacific Funds vs. Franklin Real Estate |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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