Correlation Between Angel Oak and Virtus AllianzGI
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Virtus AllianzGI 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 Virtus AllianzGI 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 Virtus AllianzGI Convertible, you can compare the effects of market volatilities on Angel Oak and Virtus AllianzGI 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 Virtus AllianzGI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Virtus AllianzGI.
Diversification Opportunities for Angel Oak and Virtus AllianzGI
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Angel and Virtus is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Virtus AllianzGI Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus AllianzGI Con 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 Virtus AllianzGI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus AllianzGI Con has no effect on the direction of Angel Oak i.e., Angel Oak and Virtus AllianzGI go up and down completely randomly.
Pair Corralation between Angel Oak and Virtus AllianzGI
Given the investment horizon of 90 days Angel Oak Financial is expected to generate 0.7 times more return on investment than Virtus AllianzGI. However, Angel Oak Financial is 1.44 times less risky than Virtus AllianzGI. It trades about 0.14 of its potential returns per unit of risk. Virtus AllianzGI Convertible is currently generating about 0.06 per unit of risk. If you would invest 1,083 in Angel Oak Financial on September 3, 2024 and sell it today you would earn a total of 195.00 from holding Angel Oak Financial or generate 18.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Financial vs. Virtus AllianzGI Convertible
Performance |
| Timeline |
| Angel Oak Financial |
| Virtus AllianzGI Con |
Angel Oak and Virtus AllianzGI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Virtus AllianzGI
The main advantage of trading using opposite Angel Oak and Virtus AllianzGI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Virtus AllianzGI 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 Virtus AllianzGI will offset losses from the drop in Virtus AllianzGI'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 |
| Virtus AllianzGI vs. The Gabelli Equity | Virtus AllianzGI vs. The Gabelli Equity | Virtus AllianzGI vs. Oxford Lane Capital | Virtus AllianzGI vs. The Gabelli Utility |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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