Correlation Between Aam/himco Short and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Aam/himco Short 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 Aam/himco Short and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aamhimco Short Duration and Angel Oak Ultrashort, you can compare the effects of market volatilities on Aam/himco Short 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 Aam/himco Short with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aam/himco Short and Angel Oak.
Diversification Opportunities for Aam/himco Short and Angel Oak
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AAM/HIMCO and Angel is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Aamhimco Short Duration and Angel Oak Ultrashort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Ultrashort and Aam/himco Short 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 Aamhimco Short Duration 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 Ultrashort has no effect on the direction of Aam/himco Short i.e., Aam/himco Short and Angel Oak go up and down completely randomly.
Pair Corralation between Aam/himco Short and Angel Oak
Assuming the 90 days horizon Aam/himco Short is expected to generate 1.08 times less return on investment than Angel Oak. But when comparing it to its historical volatility, Aamhimco Short Duration is 1.33 times less risky than Angel Oak. It trades about 0.29 of its potential returns per unit of risk. Angel Oak Ultrashort is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 872.00 in Angel Oak Ultrashort on December 27, 2024 and sell it today you would earn a total of 112.00 from holding Angel Oak Ultrashort or generate 12.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aamhimco Short Duration vs. Angel Oak Ultrashort
Performance |
| Timeline |
| Aamhimco Short Duration |
| Angel Oak Ultrashort |
Aam/himco Short and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aam/himco Short and Angel Oak
The main advantage of trading using opposite Aam/himco Short and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aam/himco Short 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.| Aam/himco Short vs. Msift High Yield | Aam/himco Short vs. Gmo High Yield | Aam/himco Short vs. Transamerica High Yield | Aam/himco Short vs. Pace High Yield |
| Angel Oak vs. Advent Claymore Convertible | Angel Oak vs. Calamos Dynamic Convertible | Angel Oak vs. Gabelli Convertible And | Angel Oak vs. Fidelity Sai Convertible |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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