Correlation Between Eagle Mlp and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Eagle Mlp 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 Eagle Mlp and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Mlp Strategy and Angel Oak Multi Strategy, you can compare the effects of market volatilities on Eagle Mlp 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 Eagle Mlp with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Mlp and Angel Oak.
Diversification Opportunities for Eagle Mlp and Angel Oak
Excellent diversification
The 3 months correlation between Eagle and Angel is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Mlp Strategy 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 Eagle Mlp 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 Eagle Mlp Strategy 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 Eagle Mlp i.e., Eagle Mlp and Angel Oak go up and down completely randomly.
Pair Corralation between Eagle Mlp and Angel Oak
Assuming the 90 days horizon Eagle Mlp Strategy is expected to generate 4.98 times more return on investment than Angel Oak. However, Eagle Mlp is 4.98 times more volatile than Angel Oak Multi Strategy. It trades about 0.11 of its potential returns per unit of risk. Angel Oak Multi Strategy is currently generating about 0.1 per unit of risk. If you would invest 657.00 in Eagle Mlp Strategy on August 25, 2024 and sell it today you would earn a total of 460.00 from holding Eagle Mlp Strategy or generate 70.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Mlp Strategy vs. Angel Oak Multi Strategy
Performance |
| Timeline |
| Eagle Mlp Strategy |
| Angel Oak Multi |
Eagle Mlp and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Mlp and Angel Oak
The main advantage of trading using opposite Eagle Mlp and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Mlp 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.| Eagle Mlp vs. Eagle Mlp Strategy | Eagle Mlp vs. Eagle Mlp Strategy | Eagle Mlp vs. Calamos Strategic Total | Eagle Mlp vs. Vaughan Nelson Select |
| Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Doubleline Income Solutions | Angel Oak vs. Angel Oak Ultrashort |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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