Correlation Between Angel Oak and Copeland Risk
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Copeland Risk 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 Copeland Risk 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 Copeland Risk Managed, you can compare the effects of market volatilities on Angel Oak and Copeland Risk 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 Copeland Risk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Copeland Risk.
Diversification Opportunities for Angel Oak and Copeland Risk
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Angel and Copeland is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Ultrashort and Copeland Risk Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copeland Risk Managed 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 Copeland Risk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copeland Risk Managed has no effect on the direction of Angel Oak i.e., Angel Oak and Copeland Risk go up and down completely randomly.
Pair Corralation between Angel Oak and Copeland Risk
Assuming the 90 days horizon Angel Oak is expected to generate 3.71 times less return on investment than Copeland Risk. But when comparing it to its historical volatility, Angel Oak Ultrashort is 7.88 times less risky than Copeland Risk. It trades about 0.23 of its potential returns per unit of risk. Copeland Risk Managed is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,289 in Copeland Risk Managed on September 3, 2024 and sell it today you would earn a total of 167.00 from holding Copeland Risk Managed or generate 12.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Ultrashort vs. Copeland Risk Managed
Performance |
| Timeline |
| Angel Oak Ultrashort |
| Copeland Risk Managed |
Angel Oak and Copeland Risk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Copeland Risk
The main advantage of trading using opposite Angel Oak and Copeland Risk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Copeland Risk 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 Copeland Risk will offset losses from the drop in Copeland Risk's long position.| Angel Oak vs. Icon Financial Fund | Angel Oak vs. Blackrock Financial Institutions | Angel Oak vs. Mesirow Financial Small | Angel Oak vs. Goldman Sachs Financial |
| Copeland Risk vs. Vanguard Mid Cap Index | Copeland Risk vs. Vanguard Mid Cap Index | Copeland Risk vs. Vanguard Mid Cap Index | Copeland Risk vs. Vanguard Mid Cap Index |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |