Correlation Between Angel Oak and Oppenheimer Main
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Oppenheimer Main 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 Oppenheimer Main 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 Oppenheimer Main Street, you can compare the effects of market volatilities on Angel Oak and Oppenheimer Main 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 Oppenheimer Main. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Oppenheimer Main.
Diversification Opportunities for Angel Oak and Oppenheimer Main
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Angel and Oppenheimer is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Ultrashort and Oppenheimer Main Street in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Main Street 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 Oppenheimer Main. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Main Street has no effect on the direction of Angel Oak i.e., Angel Oak and Oppenheimer Main go up and down completely randomly.
Pair Corralation between Angel Oak and Oppenheimer Main
Assuming the 90 days horizon Angel Oak is expected to generate 52.33 times less return on investment than Oppenheimer Main. But when comparing it to its historical volatility, Angel Oak Ultrashort is 15.45 times less risky than Oppenheimer Main. It trades about 0.06 of its potential returns per unit of risk. Oppenheimer Main Street is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,200 in Oppenheimer Main Street on September 3, 2024 and sell it today you would earn a total of 242.00 from holding Oppenheimer Main Street or generate 11.0% 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. Oppenheimer Main Street
Performance |
| Timeline |
| Angel Oak Ultrashort |
| Oppenheimer Main Street |
Angel Oak and Oppenheimer Main Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Oppenheimer Main
The main advantage of trading using opposite Angel Oak and Oppenheimer Main positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Oppenheimer Main 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 Oppenheimer Main will offset losses from the drop in Oppenheimer Main'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 |
| Oppenheimer Main vs. Angel Oak Ultrashort | Oppenheimer Main vs. Federated Short Term Income | Oppenheimer Main vs. Astor Longshort Fund | Oppenheimer Main vs. Locorr Longshort Modities |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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