Correlation Between Calvert Emerging and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Calvert 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 Calvert 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 Calvert Emerging Markets and Angel Oak Multi Strategy, you can compare the effects of market volatilities on Calvert 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 Calvert Emerging with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Emerging and Angel Oak.
Diversification Opportunities for Calvert Emerging and Angel Oak
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calvert and Angel is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Emerging Markets 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 Calvert 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 Calvert 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 Multi has no effect on the direction of Calvert Emerging i.e., Calvert Emerging and Angel Oak go up and down completely randomly.
Pair Corralation between Calvert Emerging and Angel Oak
Assuming the 90 days horizon Calvert Emerging Markets is expected to under-perform the Angel Oak. In addition to that, Calvert Emerging is 6.05 times more volatile than Angel Oak Multi Strategy. It trades about -0.06 of its total potential returns per unit of risk. Angel Oak Multi Strategy is currently generating about -0.06 per unit of volatility. If you would invest 860.00 in Angel Oak Multi Strategy on August 31, 2024 and sell it today you would lose (4.00) from holding Angel Oak Multi Strategy or give up 0.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Emerging Markets vs. Angel Oak Multi Strategy
Performance |
| Timeline |
| Calvert Emerging Markets |
| Angel Oak Multi |
Calvert Emerging and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Emerging and Angel Oak
The main advantage of trading using opposite Calvert Emerging and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert 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.| Calvert Emerging vs. Goldman Sachs Short Term | Calvert Emerging vs. Vanguard Institutional Short Term | Calvert Emerging vs. Franklin Federal Limited Term | Calvert Emerging vs. Sterling Capital Short |
| Angel Oak vs. Blackrock Health Sciences | Angel Oak vs. Highland Longshort Healthcare | Angel Oak vs. Baron Health Care | Angel Oak vs. Lord Abbett Health |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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