Correlation Between Federated Global and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Federated Global 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 Global 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 Global Allocation and Angel Oak Multi Strategy, you can compare the effects of market volatilities on Federated Global 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 Global with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Global and Angel Oak.
Diversification Opportunities for Federated Global and Angel Oak
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Federated and Angel is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Federated Global Allocation 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 Federated Global 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 Global Allocation 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 Federated Global i.e., Federated Global and Angel Oak go up and down completely randomly.
Pair Corralation between Federated Global and Angel Oak
Assuming the 90 days horizon Federated Global Allocation is expected to generate 3.26 times more return on investment than Angel Oak. However, Federated Global is 3.26 times more volatile than Angel Oak Multi Strategy. It trades about 0.12 of its potential returns per unit of risk. Angel Oak Multi Strategy is currently generating about -0.08 per unit of risk. If you would invest 2,026 in Federated Global Allocation on September 12, 2024 and sell it today you would earn a total of 65.00 from holding Federated Global Allocation or generate 3.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Global Allocation vs. Angel Oak Multi Strategy
Performance |
| Timeline |
| Federated Global All |
| Angel Oak Multi |
Federated Global and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Global and Angel Oak
The main advantage of trading using opposite Federated Global and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Global 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 Global vs. Hennessy Bp Energy | Federated Global vs. Firsthand Alternative Energy | Federated Global vs. Oil Gas Ultrasector | Federated Global vs. Clearbridge Energy Mlp |
| Angel Oak vs. Pimco Income Fund | Angel Oak vs. Pimco Income Fund | Angel Oak vs. Pimco Incme Fund | Angel Oak vs. Pimco Income Fund |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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