Correlation Between Artisan Global and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Artisan Global and Angel Oak 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 Artisan Global and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Global Discovery and Angel Oak Financial, you can compare the effects of market volatilities on Artisan Global and Angel Oak 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 Artisan Global with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Global and Angel Oak.
Diversification Opportunities for Artisan Global and Angel Oak
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Artisan and Angel is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Global Discovery and Angel Oak Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Financial and Artisan Global 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 Artisan Global Discovery are associated (or correlated) with Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Financial has no effect on the direction of Artisan Global i.e., Artisan Global and Angel Oak go up and down completely randomly.
Pair Corralation between Artisan Global and Angel Oak
Assuming the 90 days horizon Artisan Global Discovery is expected to generate 5.4 times more return on investment than Angel Oak. However, Artisan Global is 5.4 times more volatile than Angel Oak Financial. It trades about 0.11 of its potential returns per unit of risk. Angel Oak Financial is currently generating about 0.15 per unit of risk. If you would invest 1,927 in Artisan Global Discovery on September 14, 2024 and sell it today you would earn a total of 276.00 from holding Artisan Global Discovery or generate 14.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artisan Global Discovery vs. Angel Oak Financial
Performance |
| Timeline |
| Artisan Global Discovery |
| Angel Oak Financial |
Artisan Global and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Global and Angel Oak
The main advantage of trading using opposite Artisan Global and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Global position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak's long position.| Artisan Global vs. Angel Oak Financial | Artisan Global vs. Royce Global Financial | Artisan Global vs. Goldman Sachs Financial | Artisan Global vs. Transamerica Financial Life |
| Angel Oak vs. Western Asset Municipal | Angel Oak vs. Falcon Focus Scv | Angel Oak vs. Rbc Microcap Value | Angel Oak vs. Aam Select Income |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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