Correlation Between Delaware Value and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Delaware Value 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 Delaware Value and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delaware Value Fund and Angel Oak Financial, you can compare the effects of market volatilities on Delaware Value 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 Delaware Value with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delaware Value and Angel Oak.
Diversification Opportunities for Delaware Value and Angel Oak
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Delaware and Angel is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Delaware Value Fund 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 Delaware Value 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 Delaware Value Fund 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 Delaware Value i.e., Delaware Value and Angel Oak go up and down completely randomly.
Pair Corralation between Delaware Value and Angel Oak
Assuming the 90 days horizon Delaware Value Fund is expected to under-perform the Angel Oak. In addition to that, Delaware Value is 26.3 times more volatile than Angel Oak Financial. It trades about -0.28 of its total potential returns per unit of risk. Angel Oak Financial is currently generating about -0.11 per unit of volatility. If you would invest 1,415 in Angel Oak Financial on October 9, 2024 and sell it today you would lose (6.00) from holding Angel Oak Financial or give up 0.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delaware Value Fund vs. Angel Oak Financial
Performance |
| Timeline |
| Delaware Value |
| Angel Oak Financial |
Delaware Value and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delaware Value and Angel Oak
The main advantage of trading using opposite Delaware Value and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delaware Value 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.| Delaware Value vs. Msift High Yield | Delaware Value vs. Needham Aggressive Growth | Delaware Value vs. Millerhoward High Income | Delaware Value vs. Ab High Income |
| Angel Oak vs. Gabelli Global Financial | Angel Oak vs. Mesirow Financial Small | Angel Oak vs. Icon Financial Fund | Angel Oak vs. Blackrock Financial Institutions |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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