Correlation Between Bruce Fund and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Bruce Fund 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 Bruce Fund and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bruce Fund Bruce and Angel Oak Multi Strategy, you can compare the effects of market volatilities on Bruce Fund 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 Bruce Fund with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bruce Fund and Angel Oak.
Diversification Opportunities for Bruce Fund and Angel Oak
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bruce and Angel is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Bruce Fund Bruce and Angel Oak Multi Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Multi and Bruce Fund 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 Bruce Fund Bruce 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 Multi has no effect on the direction of Bruce Fund i.e., Bruce Fund and Angel Oak go up and down completely randomly.
Pair Corralation between Bruce Fund and Angel Oak
Assuming the 90 days horizon Bruce Fund Bruce is expected to generate 4.42 times more return on investment than Angel Oak. However, Bruce Fund is 4.42 times more volatile than Angel Oak Multi Strategy. It trades about 0.09 of its potential returns per unit of risk. Angel Oak Multi Strategy is currently generating about 0.04 per unit of risk. If you would invest 53,870 in Bruce Fund Bruce on September 1, 2024 and sell it today you would earn a total of 565.00 from holding Bruce Fund Bruce or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bruce Fund Bruce vs. Angel Oak Multi Strategy
Performance |
| Timeline |
| Bruce Fund Bruce |
| Angel Oak Multi |
Bruce Fund and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bruce Fund and Angel Oak
The main advantage of trading using opposite Bruce Fund and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bruce Fund 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.| Bruce Fund vs. Quantitative Longshort Equity | Bruce Fund vs. Barings Active Short | Bruce Fund vs. Ultra Short Fixed Income | Bruce Fund vs. Aqr Sustainable Long Short |
| Angel Oak vs. Europac Gold Fund | Angel Oak vs. International Investors Gold | Angel Oak vs. Sprott Gold Equity | Angel Oak vs. Great West Goldman Sachs |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |