Correlation Between Angel Oak and Growth Fund
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Growth Fund 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 Growth Fund 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 Growth Fund C, you can compare the effects of market volatilities on Angel Oak and Growth Fund 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 Growth Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Growth Fund.
Diversification Opportunities for Angel Oak and Growth Fund
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Angel and Growth is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Ultrashort and Growth Fund C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Fund C 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 Growth Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Fund C has no effect on the direction of Angel Oak i.e., Angel Oak and Growth Fund go up and down completely randomly.
Pair Corralation between Angel Oak and Growth Fund
Assuming the 90 days horizon Angel Oak Ultrashort is expected to generate 0.02 times more return on investment than Growth Fund. However, Angel Oak Ultrashort is 46.19 times less risky than Growth Fund. It trades about 0.13 of its potential returns per unit of risk. Growth Fund C is currently generating about -0.1 per unit of risk. If you would invest 982.00 in Angel Oak Ultrashort on September 20, 2024 and sell it today you would earn a total of 1.00 from holding Angel Oak Ultrashort or generate 0.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Angel Oak Ultrashort vs. Growth Fund C
Performance |
| Timeline |
| Angel Oak Ultrashort |
| Growth Fund C |
Angel Oak and Growth Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Growth Fund
The main advantage of trading using opposite Angel Oak and Growth Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Growth Fund 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 Growth Fund will offset losses from the drop in Growth Fund's long position.| Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Doubleline Income Solutions |
| Growth Fund vs. Cmg Ultra Short | Growth Fund vs. Alpine Ultra Short | Growth Fund vs. Transam Short Term Bond | Growth Fund vs. Angel Oak Ultrashort |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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