Correlation Between Angel Oak and Energy Services
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Energy Services 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 Energy Services 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 Energy Services Fund, you can compare the effects of market volatilities on Angel Oak and Energy Services 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 Energy Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Energy Services.
Diversification Opportunities for Angel Oak and Energy Services
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Angel and Energy is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Multi Strategy and Energy Services Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy Services 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 Energy Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Services has no effect on the direction of Angel Oak i.e., Angel Oak and Energy Services go up and down completely randomly.
Pair Corralation between Angel Oak and Energy Services
Assuming the 90 days horizon Angel Oak Multi Strategy is expected to generate 0.12 times more return on investment than Energy Services. However, Angel Oak Multi Strategy is 8.36 times less risky than Energy Services. It trades about 0.14 of its potential returns per unit of risk. Energy Services Fund is currently generating about -0.01 per unit of risk. If you would invest 778.00 in Angel Oak Multi Strategy on September 12, 2024 and sell it today you would earn a total of 81.00 from holding Angel Oak Multi Strategy or generate 10.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Multi Strategy vs. Energy Services Fund
Performance |
| Timeline |
| Angel Oak Multi |
| Energy Services |
Angel Oak and Energy Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Energy Services
The main advantage of trading using opposite Angel Oak and Energy Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Energy Services 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 Energy Services will offset losses from the drop in Energy Services' long position.| Angel Oak vs. Pimco Income Fund | Angel Oak vs. Pimco Income Fund | Angel Oak vs. Pimco Incme Fund | Angel Oak vs. Pimco Income Fund |
| Energy Services vs. Calamos Dynamic Convertible | Energy Services vs. Gabelli Convertible And | Energy Services vs. Virtus Convertible | Energy Services vs. Fidelity Sai Convertible |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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