Correlation Between Angel Oak and Old Westbury
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Old Westbury 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 Old Westbury 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 Old Westbury Short Term, you can compare the effects of market volatilities on Angel Oak and Old Westbury 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 Old Westbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Old Westbury.
Diversification Opportunities for Angel Oak and Old Westbury
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Angel and Old is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Ultrashort and Old Westbury Short Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Westbury Short 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 Old Westbury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Westbury Short has no effect on the direction of Angel Oak i.e., Angel Oak and Old Westbury go up and down completely randomly.
Pair Corralation between Angel Oak and Old Westbury
Assuming the 90 days horizon Angel Oak Ultrashort is expected to generate 1.05 times more return on investment than Old Westbury. However, Angel Oak is 1.05 times more volatile than Old Westbury Short Term. It trades about 0.18 of its potential returns per unit of risk. Old Westbury Short Term is currently generating about 0.03 per unit of risk. If you would invest 970.00 in Angel Oak Ultrashort on August 23, 2024 and sell it today you would earn a total of 12.00 from holding Angel Oak Ultrashort or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Ultrashort vs. Old Westbury Short Term
Performance |
| Timeline |
| Angel Oak Ultrashort |
| Old Westbury Short |
Angel Oak and Old Westbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Old Westbury
The main advantage of trading using opposite Angel Oak and Old Westbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Old Westbury 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 Old Westbury will offset losses from the drop in Old Westbury's long position.| Angel Oak vs. Europac Gold Fund | Angel Oak vs. James Balanced Golden | Angel Oak vs. International Investors Gold | Angel Oak vs. Oppenheimer Gold Special |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |