Correlation Between Brookfield Corp and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Brookfield Corp 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 Brookfield Corp and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Corp and Angel Oak Mortgage, you can compare the effects of market volatilities on Brookfield Corp 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 Brookfield Corp with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Corp and Angel Oak.
Diversification Opportunities for Brookfield Corp and Angel Oak
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Brookfield and Angel is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Corp and Angel Oak Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Mortgage and Brookfield Corp 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 Brookfield Corp 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 Mortgage has no effect on the direction of Brookfield Corp i.e., Brookfield Corp and Angel Oak go up and down completely randomly.
Pair Corralation between Brookfield Corp and Angel Oak
Allowing for the 90-day total investment horizon Brookfield Corp is expected to generate 0.93 times more return on investment than Angel Oak. However, Brookfield Corp is 1.08 times less risky than Angel Oak. It trades about 0.26 of its potential returns per unit of risk. Angel Oak Mortgage is currently generating about 0.2 per unit of risk. If you would invest 5,468 in Brookfield Corp on August 27, 2024 and sell it today you would earn a total of 502.00 from holding Brookfield Corp or generate 9.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookfield Corp vs. Angel Oak Mortgage
Performance |
| Timeline |
| Brookfield Corp |
| Angel Oak Mortgage |
Brookfield Corp and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Corp and Angel Oak
The main advantage of trading using opposite Brookfield Corp and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Corp 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.| Brookfield Corp vs. KKR Co LP | Brookfield Corp vs. Blackstone Group | Brookfield Corp vs. T Rowe Price | Brookfield Corp vs. Apollo Global Management |
| Angel Oak vs. Granite Point Mortgage | Angel Oak vs. MFA Financial | Angel Oak vs. Two Harbors Investments | Angel Oak vs. PennyMac Mortgage Investment |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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