Correlation Between Angel Oak and Ambrus Core
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Ambrus Core 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 Ambrus Core 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 Ambrus Core Bond, you can compare the effects of market volatilities on Angel Oak and Ambrus Core 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 Ambrus Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Ambrus Core.
Diversification Opportunities for Angel Oak and Ambrus Core
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Angel and Ambrus is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Ultrashort and Ambrus Core Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambrus Core 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 Ambrus Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambrus Core Bond has no effect on the direction of Angel Oak i.e., Angel Oak and Ambrus Core go up and down completely randomly.
Pair Corralation between Angel Oak and Ambrus Core
Assuming the 90 days horizon Angel Oak Ultrashort is expected to generate 0.47 times more return on investment than Ambrus Core. However, Angel Oak Ultrashort is 2.15 times less risky than Ambrus Core. It trades about 0.24 of its potential returns per unit of risk. Ambrus Core Bond is currently generating about 0.09 per unit of risk. If you would invest 887.00 in Angel Oak Ultrashort on November 8, 2024 and sell it today you would earn a total of 96.00 from holding Angel Oak Ultrashort or generate 10.82% 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. Ambrus Core Bond
Performance |
| Timeline |
| Angel Oak Ultrashort |
| Ambrus Core Bond |
Angel Oak and Ambrus Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Ambrus Core
The main advantage of trading using opposite Angel Oak and Ambrus Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Ambrus Core 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 Ambrus Core will offset losses from the drop in Ambrus Core's long position.| Angel Oak vs. Pace High Yield | Angel Oak vs. Aqr Risk Parity | Angel Oak vs. Ab High Income | Angel Oak vs. The Hartford High |
| Ambrus Core vs. Abbey Capital Futures | Ambrus Core vs. Ab Bond Inflation | Ambrus Core vs. Ab Bond Inflation | Ambrus Core vs. Pimco Inflation Response |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |