Correlation Between Power Floating and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Power Floating 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 Power Floating and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Power Floating Rate and Angel Oak Financial, you can compare the effects of market volatilities on Power Floating 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 Power Floating with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Power Floating and Angel Oak.
Diversification Opportunities for Power Floating and Angel Oak
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Power and Angel is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Power Floating Rate and Angel Oak Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Financial and Power Floating 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 Power Floating Rate 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 Financial has no effect on the direction of Power Floating i.e., Power Floating and Angel Oak go up and down completely randomly.
Pair Corralation between Power Floating and Angel Oak
Assuming the 90 days horizon Power Floating Rate is expected to generate 0.4 times more return on investment than Angel Oak. However, Power Floating Rate is 2.53 times less risky than Angel Oak. It trades about 0.27 of its potential returns per unit of risk. Angel Oak Financial is currently generating about 0.04 per unit of risk. If you would invest 902.00 in Power Floating Rate on November 3, 2024 and sell it today you would earn a total of 52.00 from holding Power Floating Rate or generate 5.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Power Floating Rate vs. Angel Oak Financial
Performance |
| Timeline |
| Power Floating Rate |
| Angel Oak Financial |
Power Floating and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Power Floating and Angel Oak
The main advantage of trading using opposite Power Floating and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Power Floating 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.| Power Floating vs. Lord Abbett Inflation | Power Floating vs. Fidelity Sai Inflationfocused | Power Floating vs. Aqr Managed Futures | Power Floating vs. Ab Bond Inflation |
| Angel Oak vs. Hartford Healthcare Hls | Angel Oak vs. Baron Health Care | Angel Oak vs. Vanguard Health Care | Angel Oak vs. Blackrock Health Sciences |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |