Correlation Between Angel Oak and Western Asset
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Western Asset 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 Western Asset 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 Western Asset Premier, you can compare the effects of market volatilities on Angel Oak and Western Asset 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 Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Western Asset.
Diversification Opportunities for Angel Oak and Western Asset
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Angel and Western is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Multi Strategy and Western Asset Premier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Premier 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 Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Premier has no effect on the direction of Angel Oak i.e., Angel Oak and Western Asset go up and down completely randomly.
Pair Corralation between Angel Oak and Western Asset
If you would invest 853.00 in Angel Oak Multi Strategy on August 29, 2024 and sell it today you would earn a total of 3.00 from holding Angel Oak Multi Strategy or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Multi Strategy vs. Western Asset Premier
Performance |
| Timeline |
| Angel Oak Multi |
| Western Asset Premier |
Angel Oak and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Western Asset
The main advantage of trading using opposite Angel Oak and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| Angel Oak vs. Pimco Income Fund | Angel Oak vs. HUMANA INC | Angel Oak vs. Aquagold International | Angel Oak vs. Barloworld Ltd ADR |
| Western Asset vs. Angel Oak Multi Strategy | Western Asset vs. T Rowe Price | Western Asset vs. Dodge Cox Emerging | Western Asset 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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