Correlation Between Shelton Emerging and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Shelton 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 Shelton 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 Shelton Emerging Markets and Angel Oak Multi Strategy, you can compare the effects of market volatilities on Shelton 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 Shelton Emerging with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Emerging and Angel Oak.
Diversification Opportunities for Shelton Emerging and Angel Oak
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shelton and Angel is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Shelton 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 Shelton 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 Shelton 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 Shelton Emerging i.e., Shelton Emerging and Angel Oak go up and down completely randomly.
Pair Corralation between Shelton Emerging and Angel Oak
Assuming the 90 days horizon Shelton Emerging Markets is expected to under-perform the Angel Oak. In addition to that, Shelton Emerging is 5.47 times more volatile than Angel Oak Multi Strategy. It trades about -0.2 of its total potential returns per unit of risk. Angel Oak Multi Strategy is currently generating about 0.07 per unit of volatility. If you would invest 853.00 in Angel Oak Multi Strategy on August 29, 2024 and sell it today you would earn a total of 2.00 from holding Angel Oak Multi Strategy or generate 0.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shelton Emerging Markets vs. Angel Oak Multi Strategy
Performance |
| Timeline |
| Shelton Emerging Markets |
| Angel Oak Multi |
Shelton Emerging and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shelton Emerging and Angel Oak
The main advantage of trading using opposite Shelton Emerging and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton 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.| Shelton Emerging vs. Vanguard Emerging Markets | Shelton Emerging vs. Vanguard Emerging Markets | Shelton Emerging vs. HUMANA INC | Shelton Emerging vs. Aquagold International |
| Angel Oak vs. Pimco Income Fund | Angel Oak vs. HUMANA INC | Angel Oak vs. Aquagold International | Angel Oak vs. Barloworld Ltd ADR |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |