Correlation Between Angel Oak and Dunham International
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Dunham International 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 Dunham International 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 Dunham International Opportunity, you can compare the effects of market volatilities on Angel Oak and Dunham International 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 Dunham International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Dunham International.
Diversification Opportunities for Angel Oak and Dunham International
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Angel and Dunham is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Ultrashort and Dunham International Opportuni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham International 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 Dunham International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham International has no effect on the direction of Angel Oak i.e., Angel Oak and Dunham International go up and down completely randomly.
Pair Corralation between Angel Oak and Dunham International
Assuming the 90 days horizon Angel Oak is expected to generate 1.27 times less return on investment than Dunham International. But when comparing it to its historical volatility, Angel Oak Ultrashort is 1.95 times less risky than Dunham International. It trades about 0.3 of its potential returns per unit of risk. Dunham International Opportunity is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 776.00 in Dunham International Opportunity on December 1, 2024 and sell it today you would earn a total of 6.00 from holding Dunham International Opportunity or generate 0.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Ultrashort vs. Dunham International Opportuni
Performance |
| Timeline |
| Angel Oak Ultrashort |
| Dunham International |
Angel Oak and Dunham International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Dunham International
The main advantage of trading using opposite Angel Oak and Dunham International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Dunham International 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 Dunham International will offset losses from the drop in Dunham International's long position.| Angel Oak vs. T Rowe Price | Angel Oak vs. Red Oak Technology | Angel Oak vs. Fidelity Advisor Technology | Angel Oak vs. Virtus Artificial Intelligence |
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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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