Correlation Between Angel Oak and Strategic Bond
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Strategic Bond 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 Strategic Bond 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 Strategic Bond Fund, you can compare the effects of market volatilities on Angel Oak and Strategic Bond 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 Strategic Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Strategic Bond.
Diversification Opportunities for Angel Oak and Strategic Bond
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Angel and Strategic is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Ultrashort and Strategic Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Bond 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 Strategic Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Bond has no effect on the direction of Angel Oak i.e., Angel Oak and Strategic Bond go up and down completely randomly.
Pair Corralation between Angel Oak and Strategic Bond
Assuming the 90 days horizon Angel Oak Ultrashort is expected to generate 0.33 times more return on investment than Strategic Bond. However, Angel Oak Ultrashort is 2.99 times less risky than Strategic Bond. It trades about 0.1 of its potential returns per unit of risk. Strategic Bond Fund is currently generating about -0.12 per unit of risk. If you would invest 980.00 in Angel Oak Ultrashort on August 25, 2024 and sell it today you would earn a total of 2.00 from holding Angel Oak Ultrashort or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Ultrashort vs. Strategic Bond Fund
Performance |
| Timeline |
| Angel Oak Ultrashort |
| Strategic Bond |
Angel Oak and Strategic Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Strategic Bond
The main advantage of trading using opposite Angel Oak and Strategic Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Strategic Bond 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 Strategic Bond will offset losses from the drop in Strategic Bond'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 |
| Strategic Bond vs. Aqr Long Short Equity | Strategic Bond vs. Maryland Short Term Tax Free | Strategic Bond vs. Angel Oak Ultrashort | Strategic Bond vs. Guggenheim Long Short |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |