Correlation Between Angel Oak and MFS Municipal
Can any of the company-specific risk be diversified away by investing in both Angel Oak and MFS Municipal 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 Angel Oak and MFS Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Angel Oak Financial and MFS Municipal Income, you can compare the effects of market volatilities on Angel Oak and MFS Municipal 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 Angel Oak with a short position of MFS Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and MFS Municipal.
Diversification Opportunities for Angel Oak and MFS Municipal
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Angel and MFS is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and MFS Municipal Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS Municipal Income and Angel Oak 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 Angel Oak Financial are associated (or correlated) with MFS Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS Municipal Income has no effect on the direction of Angel Oak i.e., Angel Oak and MFS Municipal go up and down completely randomly.
Pair Corralation between Angel Oak and MFS Municipal
Given the investment horizon of 90 days Angel Oak Financial is expected to under-perform the MFS Municipal. But the stock apears to be less risky and, when comparing its historical volatility, Angel Oak Financial is 1.34 times less risky than MFS Municipal. The stock trades about -0.18 of its potential returns per unit of risk. The MFS Municipal Income is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 548.00 in MFS Municipal Income on August 27, 2024 and sell it today you would earn a total of 8.00 from holding MFS Municipal Income or generate 1.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Financial vs. MFS Municipal Income
Performance |
| Timeline |
| Angel Oak Financial |
| MFS Municipal Income |
Angel Oak and MFS Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and MFS Municipal
The main advantage of trading using opposite Angel Oak and MFS Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, MFS Municipal 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 MFS Municipal will offset losses from the drop in MFS Municipal's long position.| Angel Oak vs. Eaton Vance National | Angel Oak vs. Invesco High Income | Angel Oak vs. Blackrock Muniholdings Ny | Angel Oak vs. Nuveen California Select |
| MFS Municipal vs. PowerUp Acquisition Corp | MFS Municipal vs. Aurora Innovation | MFS Municipal vs. HUMANA INC | MFS Municipal vs. Aquagold International |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |