Correlation Between Falcon Focus and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Falcon Focus 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 Falcon Focus and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Falcon Focus Scv and Angel Oak Multi Strategy, you can compare the effects of market volatilities on Falcon Focus 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 Falcon Focus with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Falcon Focus and Angel Oak.
Diversification Opportunities for Falcon Focus and Angel Oak
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Falcon and Angel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Falcon Focus Scv 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 Falcon Focus 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 Falcon Focus Scv 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 Falcon Focus i.e., Falcon Focus and Angel Oak go up and down completely randomly.
Pair Corralation between Falcon Focus and Angel Oak
If you would invest 854.00 in Angel Oak Multi Strategy on August 23, 2024 and sell it today you would earn a total of 1.00 from holding Angel Oak Multi Strategy or generate 0.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Falcon Focus Scv vs. Angel Oak Multi Strategy
Performance |
| Timeline |
| Falcon Focus Scv |
| Angel Oak Multi |
Falcon Focus and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Falcon Focus and Angel Oak
The main advantage of trading using opposite Falcon Focus and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Falcon Focus 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.| Falcon Focus vs. Vanguard Total Stock | Falcon Focus vs. Vanguard 500 Index | Falcon Focus vs. Vanguard Total Stock | Falcon Focus vs. Vanguard Total Stock |
| Angel Oak vs. Rbc Microcap Value | Angel Oak vs. Leggmason Partners Institutional | Angel Oak vs. Iaadx | Angel Oak vs. Falcon Focus Scv |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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