Correlation Between Angel Oak and Baird Strategic
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Baird Strategic 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 Baird Strategic 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 Baird Strategic Municipal, you can compare the effects of market volatilities on Angel Oak and Baird Strategic 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 Baird Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Baird Strategic.
Diversification Opportunities for Angel Oak and Baird Strategic
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Angel and Baird is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Ultrashort and Baird Strategic Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baird Strategic Municipal 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 Baird Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baird Strategic Municipal has no effect on the direction of Angel Oak i.e., Angel Oak and Baird Strategic go up and down completely randomly.
Pair Corralation between Angel Oak and Baird Strategic
Assuming the 90 days horizon Angel Oak is expected to generate 6.29 times less return on investment than Baird Strategic. But when comparing it to its historical volatility, Angel Oak Ultrashort is 2.21 times less risky than Baird Strategic. It trades about 0.13 of its potential returns per unit of risk. Baird Strategic Municipal is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 1,030 in Baird Strategic Municipal on September 13, 2024 and sell it today you would earn a total of 7.00 from holding Baird Strategic Municipal or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Angel Oak Ultrashort vs. Baird Strategic Municipal
Performance |
| Timeline |
| Angel Oak Ultrashort |
| Baird Strategic Municipal |
Angel Oak and Baird Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Baird Strategic
The main advantage of trading using opposite Angel Oak and Baird Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Baird Strategic 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 Baird Strategic will offset losses from the drop in Baird Strategic's long position.| Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Doubleline Income Solutions |
| Baird Strategic vs. Baird Short Term Municipal | Baird Strategic vs. Baird Short Term Bond | Baird Strategic vs. Bbh Intermediate Municipal | Baird Strategic vs. High Yield Municipal Fund |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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