Correlation Between Angel Oak and Westwood Smallcap
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Westwood Smallcap 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 Westwood Smallcap 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 Westwood Smallcap Growth, you can compare the effects of market volatilities on Angel Oak and Westwood Smallcap 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 Westwood Smallcap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Westwood Smallcap.
Diversification Opportunities for Angel Oak and Westwood Smallcap
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Angel and Westwood is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Multi Strategy and Westwood Smallcap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westwood Smallcap Growth 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 Westwood Smallcap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westwood Smallcap Growth has no effect on the direction of Angel Oak i.e., Angel Oak and Westwood Smallcap go up and down completely randomly.
Pair Corralation between Angel Oak and Westwood Smallcap
If you would invest 825.00 in Angel Oak Multi Strategy on September 5, 2024 and sell it today you would earn a total of 33.00 from holding Angel Oak Multi Strategy or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.81% |
| Values | Daily Returns |
Angel Oak Multi Strategy vs. Westwood Smallcap Growth
Performance |
| Timeline |
| Angel Oak Multi |
| Westwood Smallcap Growth |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Angel Oak and Westwood Smallcap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Westwood Smallcap
The main advantage of trading using opposite Angel Oak and Westwood Smallcap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Westwood Smallcap 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 Westwood Smallcap will offset losses from the drop in Westwood Smallcap's long position.| Angel Oak vs. Goldman Sachs Short | Angel Oak vs. Fidelity Advisor Gold | Angel Oak vs. Gabelli Gold Fund | Angel Oak vs. James Balanced Golden |
| Westwood Smallcap vs. Transamerica Emerging Markets | Westwood Smallcap vs. Angel Oak Multi Strategy | Westwood Smallcap vs. Legg Mason Partners | Westwood Smallcap vs. Artisan Emerging 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 CEOs Directory module to screen CEOs from public companies around the world.
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