Correlation Between Angel Oak and Cliffwater Corporate
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Cliffwater Corporate 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 Cliffwater Corporate 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 Cliffwater Corporate Lending, you can compare the effects of market volatilities on Angel Oak and Cliffwater Corporate 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 Cliffwater Corporate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Cliffwater Corporate.
Diversification Opportunities for Angel Oak and Cliffwater Corporate
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Angel and Cliffwater is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Ultrashort and Cliffwater Corporate Lending in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cliffwater Corporate 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 Cliffwater Corporate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cliffwater Corporate has no effect on the direction of Angel Oak i.e., Angel Oak and Cliffwater Corporate go up and down completely randomly.
Pair Corralation between Angel Oak and Cliffwater Corporate
Assuming the 90 days horizon Angel Oak is expected to generate 1.83 times less return on investment than Cliffwater Corporate. In addition to that, Angel Oak is 1.79 times more volatile than Cliffwater Corporate Lending. It trades about 0.23 of its total potential returns per unit of risk. Cliffwater Corporate Lending is currently generating about 0.76 per unit of volatility. If you would invest 964.00 in Cliffwater Corporate Lending on September 4, 2024 and sell it today you would earn a total of 120.00 from holding Cliffwater Corporate Lending or generate 12.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Ultrashort vs. Cliffwater Corporate Lending
Performance |
| Timeline |
| Angel Oak Ultrashort |
| Cliffwater Corporate |
Angel Oak and Cliffwater Corporate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Cliffwater Corporate
The main advantage of trading using opposite Angel Oak and Cliffwater Corporate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Cliffwater Corporate 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 Cliffwater Corporate will offset losses from the drop in Cliffwater Corporate's long position.| Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Doubleline Income Solutions | Angel Oak vs. Angel Oak Ultrashort |
| Cliffwater Corporate vs. Legg Mason Partners | Cliffwater Corporate vs. Arrow Managed Futures | Cliffwater Corporate vs. Growth Strategy Fund | Cliffwater Corporate vs. Ep 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |