Correlation Between Cullen Emerging and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Cullen 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 Cullen 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 Cullen Emerging Markets and Angel Oak Financial, you can compare the effects of market volatilities on Cullen 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 Cullen Emerging with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullen Emerging and Angel Oak.
Diversification Opportunities for Cullen Emerging and Angel Oak
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cullen and Angel is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Cullen Emerging Markets 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 Cullen 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 Cullen 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 Financial has no effect on the direction of Cullen Emerging i.e., Cullen Emerging and Angel Oak go up and down completely randomly.
Pair Corralation between Cullen Emerging and Angel Oak
Assuming the 90 days horizon Cullen Emerging Markets is expected to generate 3.96 times more return on investment than Angel Oak. However, Cullen Emerging is 3.96 times more volatile than Angel Oak Financial. It trades about 0.12 of its potential returns per unit of risk. Angel Oak Financial is currently generating about 0.0 per unit of risk. If you would invest 1,207 in Cullen Emerging Markets on November 28, 2024 and sell it today you would earn a total of 22.00 from holding Cullen Emerging Markets or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cullen Emerging Markets vs. Angel Oak Financial
Performance |
| Timeline |
| Cullen Emerging Markets |
| Angel Oak Financial |
Cullen Emerging and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cullen Emerging and Angel Oak
The main advantage of trading using opposite Cullen Emerging and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cullen 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.| Cullen Emerging vs. Dreyfusstandish Global Fixed | Cullen Emerging vs. Buffalo High Yield | Cullen Emerging vs. Massmutual Premier E | Cullen Emerging vs. The Hartford World |
| Angel Oak vs. Rbc Short Duration | Angel Oak vs. Metropolitan West Ultra | Angel Oak vs. Cmg Ultra Short | Angel Oak vs. Transam Short Term Bond |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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