Correlation Between Federated High and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Federated High 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 Federated High and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated High Yield and Angel Oak Core, you can compare the effects of market volatilities on Federated High 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 Federated High with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated High and Angel Oak.
Diversification Opportunities for Federated High and Angel Oak
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Federated and Angel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Federated High Yield and Angel Oak Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Core and Federated High 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 Federated High Yield 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 Core has no effect on the direction of Federated High i.e., Federated High and Angel Oak go up and down completely randomly.
Pair Corralation between Federated High and Angel Oak
If you would invest 636.00 in Federated High Yield on November 3, 2024 and sell it today you would earn a total of 5.00 from holding Federated High Yield or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Federated High Yield vs. Angel Oak Core
Performance |
| Timeline |
| Federated High Yield |
| Angel Oak Core |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Federated High and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated High and Angel Oak
The main advantage of trading using opposite Federated High and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated High 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.| Federated High vs. Janus High Yield Fund | Federated High vs. Northeast Investors Trust | Federated High vs. High Yield Fund Investor | Federated High vs. Ab Sustainable Thematic |
| Angel Oak vs. Blackrock Large Cap | Angel Oak vs. Dodge Cox Stock | Angel Oak vs. Guidemark Large Cap | Angel Oak vs. Avantis Large Cap |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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