Correlation Between Barings Emerging and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Barings Emerging 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 Barings Emerging and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Emerging Markets and Angel Oak Ultrashort, you can compare the effects of market volatilities on Barings Emerging 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 Barings Emerging with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Emerging and Angel Oak.
Diversification Opportunities for Barings Emerging and Angel Oak
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Barings and Angel is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Barings Emerging Markets 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 Barings Emerging 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 Barings Emerging Markets 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 Barings Emerging i.e., Barings Emerging and Angel Oak go up and down completely randomly.
Pair Corralation between Barings Emerging and Angel Oak
Assuming the 90 days horizon Barings Emerging Markets is expected to generate 6.62 times more return on investment than Angel Oak. However, Barings Emerging is 6.62 times more volatile than Angel Oak Ultrashort. It trades about 0.23 of its potential returns per unit of risk. Angel Oak Ultrashort is currently generating about 0.13 per unit of risk. If you would invest 747.00 in Barings Emerging Markets on November 5, 2024 and sell it today you would earn a total of 9.00 from holding Barings Emerging Markets or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Emerging Markets vs. Angel Oak Ultrashort
Performance |
| Timeline |
| Barings Emerging Markets |
| Angel Oak Ultrashort |
Barings Emerging and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Emerging and Angel Oak
The main advantage of trading using opposite Barings Emerging and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Emerging 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.| Barings Emerging vs. Allianzgi Diversified Income | Barings Emerging vs. Fulcrum Diversified Absolute | Barings Emerging vs. Jhancock Diversified Macro | Barings Emerging vs. Jpmorgan Diversified Fund |
| Angel Oak vs. Qs Growth Fund | Angel Oak vs. Needham Aggressive Growth | Angel Oak vs. Growth Portfolio Class | Angel Oak vs. T Rowe Price |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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