Correlation Between Angel Oak and Smi Conservative
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Smi Conservative 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 Smi Conservative 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 Smi Servative Allocation, you can compare the effects of market volatilities on Angel Oak and Smi Conservative 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 Smi Conservative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Smi Conservative.
Diversification Opportunities for Angel Oak and Smi Conservative
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Angel and Smi is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Multi Strategy and Smi Servative Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smi Servative Allocation 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 Smi Conservative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smi Servative Allocation has no effect on the direction of Angel Oak i.e., Angel Oak and Smi Conservative go up and down completely randomly.
Pair Corralation between Angel Oak and Smi Conservative
Assuming the 90 days horizon Angel Oak is expected to generate 14.73 times less return on investment than Smi Conservative. But when comparing it to its historical volatility, Angel Oak Multi Strategy is 4.94 times less risky than Smi Conservative. It trades about 0.07 of its potential returns per unit of risk. Smi Servative Allocation is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,098 in Smi Servative Allocation on August 30, 2024 and sell it today you would earn a total of 38.00 from holding Smi Servative Allocation or generate 3.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Multi Strategy vs. Smi Servative Allocation
Performance |
| Timeline |
| Angel Oak Multi |
| Smi Servative Allocation |
Angel Oak and Smi Conservative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Smi Conservative
The main advantage of trading using opposite Angel Oak and Smi Conservative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Smi Conservative 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 Smi Conservative will offset losses from the drop in Smi Conservative's long position.| Angel Oak vs. Doubleline Income Solutions | Angel Oak vs. Angel Oak Ultrashort | Angel Oak vs. Angel Oak Ultrashort | Angel Oak vs. Angel Oak Ultrashort |
| Smi Conservative vs. Smi Dynamic Allocation | Smi Conservative vs. Sound Mind Investing | Smi Conservative vs. Prudential Jennison International | Smi Conservative vs. Fidelity New Markets |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |