Correlation Between Angel Oak and Osterweis Emerging
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Osterweis Emerging 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 Osterweis Emerging 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 Osterweis Emerging Opportunity, you can compare the effects of market volatilities on Angel Oak and Osterweis Emerging 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 Osterweis Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Osterweis Emerging.
Diversification Opportunities for Angel Oak and Osterweis Emerging
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Angel and Osterweis is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Ultrashort and Osterweis Emerging Opportunity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osterweis Emerging 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 Osterweis Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osterweis Emerging has no effect on the direction of Angel Oak i.e., Angel Oak and Osterweis Emerging go up and down completely randomly.
Pair Corralation between Angel Oak and Osterweis Emerging
Assuming the 90 days horizon Angel Oak is expected to generate 3.94 times less return on investment than Osterweis Emerging. But when comparing it to its historical volatility, Angel Oak Ultrashort is 10.72 times less risky than Osterweis Emerging. It trades about 0.23 of its potential returns per unit of risk. Osterweis Emerging Opportunity is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,196 in Osterweis Emerging Opportunity on September 4, 2024 and sell it today you would earn a total of 694.00 from holding Osterweis Emerging Opportunity or generate 58.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Angel Oak Ultrashort vs. Osterweis Emerging Opportunity
Performance |
| Timeline |
| Angel Oak Ultrashort |
| Osterweis Emerging |
Angel Oak and Osterweis Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Osterweis Emerging
The main advantage of trading using opposite Angel Oak and Osterweis Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Osterweis Emerging 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 Osterweis Emerging will offset losses from the drop in Osterweis Emerging's long position.| Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Doubleline Income Solutions | Angel Oak vs. Angel Oak Ultrashort |
| Osterweis Emerging vs. Smallcap Growth Fund | Osterweis Emerging vs. Mid Cap Growth | Osterweis Emerging vs. Pace Smallmedium Growth | Osterweis Emerging vs. Chase Growth Fund |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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