Correlation Between Angel Oak and Bbh Intermediate
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Bbh Intermediate 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 Bbh Intermediate 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 Bbh Intermediate Municipal, you can compare the effects of market volatilities on Angel Oak and Bbh Intermediate 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 Bbh Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Bbh Intermediate.
Diversification Opportunities for Angel Oak and Bbh Intermediate
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Angel and BBH is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Multi Strategy and Bbh Intermediate Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bbh Intermediate Mun 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 Bbh Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bbh Intermediate Mun has no effect on the direction of Angel Oak i.e., Angel Oak and Bbh Intermediate go up and down completely randomly.
Pair Corralation between Angel Oak and Bbh Intermediate
Assuming the 90 days horizon Angel Oak is expected to generate 77.0 times less return on investment than Bbh Intermediate. But when comparing it to its historical volatility, Angel Oak Multi Strategy is 1.34 times less risky than Bbh Intermediate. It trades about 0.0 of its potential returns per unit of risk. Bbh Intermediate Municipal is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,030 in Bbh Intermediate Municipal on September 3, 2024 and sell it today you would earn a total of 5.00 from holding Bbh Intermediate Municipal or generate 0.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Multi Strategy vs. Bbh Intermediate Municipal
Performance |
| Timeline |
| Angel Oak Multi |
| Bbh Intermediate Mun |
Angel Oak and Bbh Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Bbh Intermediate
The main advantage of trading using opposite Angel Oak and Bbh Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Bbh Intermediate 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 Bbh Intermediate will offset losses from the drop in Bbh Intermediate's long position.| Angel Oak vs. Bbh Intermediate Municipal | Angel Oak vs. Volumetric Fund Volumetric | Angel Oak vs. Scharf Global Opportunity | Angel Oak vs. Balanced Fund Investor |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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