Correlation Between Angel Oak and Strategic Asset
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Strategic Asset 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 Asset 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 Asset Management, you can compare the effects of market volatilities on Angel Oak and Strategic Asset 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 Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Strategic Asset.
Diversification Opportunities for Angel Oak and Strategic Asset
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Angel and Strategic is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Ultrashort and Strategic Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Asset Mana 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 Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Asset Mana has no effect on the direction of Angel Oak i.e., Angel Oak and Strategic Asset go up and down completely randomly.
Pair Corralation between Angel Oak and Strategic Asset
Assuming the 90 days horizon Angel Oak is expected to generate 26.61 times less return on investment than Strategic Asset. But when comparing it to its historical volatility, Angel Oak Ultrashort is 14.29 times less risky than Strategic Asset. It trades about 0.22 of its potential returns per unit of risk. Strategic Asset Management is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 1,241 in Strategic Asset Management on September 4, 2024 and sell it today you would earn a total of 34.00 from holding Strategic Asset Management or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Ultrashort vs. Strategic Asset Management
Performance |
| Timeline |
| Angel Oak Ultrashort |
| Strategic Asset Mana |
Angel Oak and Strategic Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Strategic Asset
The main advantage of trading using opposite Angel Oak and Strategic Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Strategic Asset 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 Asset will offset losses from the drop in Strategic Asset'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 Asset vs. Goldman Sachs Managed | Strategic Asset vs. Fidelity Sai Inflationfocused | Strategic Asset vs. Asg Managed Futures | Strategic Asset vs. Aqr Managed Futures |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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