Correlation Between Angel Oak and Mfs Georgia
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Mfs Georgia 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 Mfs Georgia 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 Mfs Georgia Municipal, you can compare the effects of market volatilities on Angel Oak and Mfs Georgia 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 Mfs Georgia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Mfs Georgia.
Diversification Opportunities for Angel Oak and Mfs Georgia
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Angel and Mfs is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Ultrashort and Mfs Georgia Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Georgia 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 Mfs Georgia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Georgia Municipal has no effect on the direction of Angel Oak i.e., Angel Oak and Mfs Georgia go up and down completely randomly.
Pair Corralation between Angel Oak and Mfs Georgia
Assuming the 90 days horizon Angel Oak is expected to generate 3.27 times less return on investment than Mfs Georgia. But when comparing it to its historical volatility, Angel Oak Ultrashort is 5.58 times less risky than Mfs Georgia. It trades about 0.22 of its potential returns per unit of risk. Mfs Georgia Municipal is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,005 in Mfs Georgia Municipal on December 4, 2024 and sell it today you would earn a total of 7.00 from holding Mfs Georgia Municipal or generate 0.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Angel Oak Ultrashort vs. Mfs Georgia Municipal
Performance |
| Timeline |
| Angel Oak Ultrashort |
| Mfs Georgia Municipal |
Angel Oak and Mfs Georgia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Mfs Georgia
The main advantage of trading using opposite Angel Oak and Mfs Georgia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Mfs Georgia 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 Mfs Georgia will offset losses from the drop in Mfs Georgia's long position.| Angel Oak vs. Calamos Vertible Fund | Angel Oak vs. Advent Claymore Convertible | Angel Oak vs. Forum Funds | Angel Oak vs. Putnam Vertible Securities |
| Mfs Georgia vs. Avantis Large Cap | Mfs Georgia vs. American Mutual Fund | Mfs Georgia vs. Jpmorgan Large Cap | Mfs Georgia vs. Transamerica Large Cap |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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