Correlation Between Angel Oak and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Credit Suisse 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 Credit Suisse 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 Credit Suisse Multialternative, you can compare the effects of market volatilities on Angel Oak and Credit Suisse 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 Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Credit Suisse.
Diversification Opportunities for Angel Oak and Credit Suisse
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Angel and Credit is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Ultrashort and Credit Suisse Multialternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Multia 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 Credit Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Suisse Multia has no effect on the direction of Angel Oak i.e., Angel Oak and Credit Suisse go up and down completely randomly.
Pair Corralation between Angel Oak and Credit Suisse
Assuming the 90 days horizon Angel Oak Ultrashort is expected to generate 0.15 times more return on investment than Credit Suisse. However, Angel Oak Ultrashort is 6.79 times less risky than Credit Suisse. It trades about 0.32 of its potential returns per unit of risk. Credit Suisse Multialternative is currently generating about -0.02 per unit of risk. If you would invest 982.00 in Angel Oak Ultrashort on September 12, 2024 and sell it today you would earn a total of 2.00 from holding Angel Oak Ultrashort or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Ultrashort vs. Credit Suisse Multialternative
Performance |
| Timeline |
| Angel Oak Ultrashort |
| Credit Suisse Multia |
Angel Oak and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Credit Suisse
The main advantage of trading using opposite Angel Oak and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Credit Suisse 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 Credit Suisse will offset losses from the drop in Credit Suisse'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 |
| Credit Suisse vs. Investec Emerging Markets | Credit Suisse vs. Dws Emerging Markets | Credit Suisse vs. Ep Emerging Markets | Credit Suisse vs. Transamerica 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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