Correlation Between Europac Gold and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Europac Gold 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 Europac Gold and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Europac Gold Fund and Angel Oak Multi Strategy, you can compare the effects of market volatilities on Europac Gold 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 Europac Gold with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europac Gold and Angel Oak.
Diversification Opportunities for Europac Gold and Angel Oak
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Europac and Angel is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Europac Gold Fund 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 Europac Gold 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 Europac Gold 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 Multi has no effect on the direction of Europac Gold i.e., Europac Gold and Angel Oak go up and down completely randomly.
Pair Corralation between Europac Gold and Angel Oak
Assuming the 90 days horizon Europac Gold Fund is expected to under-perform the Angel Oak. In addition to that, Europac Gold is 16.34 times more volatile than Angel Oak Multi Strategy. It trades about -0.22 of its total potential returns per unit of risk. Angel Oak Multi Strategy is currently generating about 0.0 per unit of volatility. If you would invest 861.00 in Angel Oak Multi Strategy on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Angel Oak Multi Strategy or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Europac Gold Fund vs. Angel Oak Multi Strategy
Performance |
| Timeline |
| Europac Gold |
| Angel Oak Multi |
Europac Gold and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Europac Gold and Angel Oak
The main advantage of trading using opposite Europac Gold and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europac Gold 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.| Europac Gold vs. Ep Emerging Markets | Europac Gold vs. Europac International Bond | Europac Gold vs. Europac International Dividend | Europac Gold vs. Ep Emerging Markets |
| Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Doubleline Income Solutions | Angel Oak vs. Angel Oak Ultrashort | 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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