Correlation Between Angel Oak and Northern Global
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Northern Global 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 Northern Global 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 Northern Global Tactical, you can compare the effects of market volatilities on Angel Oak and Northern Global 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 Northern Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Northern Global.
Diversification Opportunities for Angel Oak and Northern Global
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Angel and Northern is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Ultrashort and Northern Global Tactical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Global Tactical 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 Northern Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Global Tactical has no effect on the direction of Angel Oak i.e., Angel Oak and Northern Global go up and down completely randomly.
Pair Corralation between Angel Oak and Northern Global
Assuming the 90 days horizon Angel Oak is expected to generate 1.31 times less return on investment than Northern Global. But when comparing it to its historical volatility, Angel Oak Ultrashort is 4.57 times less risky than Northern Global. It trades about 0.23 of its potential returns per unit of risk. Northern Global Tactical is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,129 in Northern Global Tactical on October 25, 2024 and sell it today you would earn a total of 183.00 from holding Northern Global Tactical or generate 16.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Angel Oak Ultrashort vs. Northern Global Tactical
Performance |
| Timeline |
| Angel Oak Ultrashort |
| Northern Global Tactical |
Angel Oak and Northern Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Northern Global
The main advantage of trading using opposite Angel Oak and Northern Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Northern Global 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 Northern Global will offset losses from the drop in Northern Global's long position.| Angel Oak vs. Transamerica Emerging Markets | Angel Oak vs. Investec Emerging Markets | Angel Oak vs. Embark Commodity Strategy | Angel Oak vs. Balanced Strategy Fund |
| Northern Global vs. Touchstone Small Cap | Northern Global vs. Needham Small Cap | Northern Global vs. Tax Managed Mid Small | Northern Global vs. Small Pany Growth |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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