Correlation Between Angel Oak and American High
Can any of the company-specific risk be diversified away by investing in both Angel Oak and American High 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 American High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Angel Oak Ultrashort and American High Income Municipal, you can compare the effects of market volatilities on Angel Oak and American High 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 American High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and American High.
Diversification Opportunities for Angel Oak and American High
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Angel and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Ultrashort and American High Income Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American High Income 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 Ultrashort are associated (or correlated) with American High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American High Income has no effect on the direction of Angel Oak i.e., Angel Oak and American High go up and down completely randomly.
Pair Corralation between Angel Oak and American High
Assuming the 90 days horizon Angel Oak is expected to generate 1.09 times less return on investment than American High. But when comparing it to its historical volatility, Angel Oak Ultrashort is 2.43 times less risky than American High. It trades about 0.24 of its potential returns per unit of risk. American High Income Municipal is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,364 in American High Income Municipal on September 12, 2024 and sell it today you would earn a total of 198.00 from holding American High Income Municipal or generate 14.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Ultrashort vs. American High Income Municipal
Performance |
| Timeline |
| Angel Oak Ultrashort |
| American High Income |
Angel Oak and American High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and American High
The main advantage of trading using opposite Angel Oak and American High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, American High 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 American High will offset losses from the drop in American High's long position.| Angel Oak vs. SCOR PK | Angel Oak vs. Morningstar Unconstrained Allocation | Angel Oak vs. Via Renewables | Angel Oak vs. Bondbloxx ETF Trust |
| American High vs. Nuveen High Yield | American High vs. Nuveen High Yield | American High vs. SCOR PK | American High vs. Morningstar Unconstrained Allocation |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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