Correlation Between Gabelli Multimedia and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Gabelli Multimedia 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 Gabelli Multimedia and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gabelli Multimedia and Angel Oak Financial, you can compare the effects of market volatilities on Gabelli Multimedia 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 Gabelli Multimedia with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Multimedia and Angel Oak.
Diversification Opportunities for Gabelli Multimedia and Angel Oak
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gabelli and Angel is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Multimedia 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 Gabelli Multimedia 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 The Gabelli Multimedia 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 Gabelli Multimedia i.e., Gabelli Multimedia and Angel Oak go up and down completely randomly.
Pair Corralation between Gabelli Multimedia and Angel Oak
Assuming the 90 days trading horizon Gabelli Multimedia is expected to generate 2.61 times less return on investment than Angel Oak. In addition to that, Gabelli Multimedia is 1.41 times more volatile than Angel Oak Financial. It trades about 0.04 of its total potential returns per unit of risk. Angel Oak Financial is currently generating about 0.14 per unit of volatility. 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 |
The Gabelli Multimedia vs. Angel Oak Financial
Performance |
| Timeline |
| The Gabelli Multimedia |
| Angel Oak Financial |
Gabelli Multimedia and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Multimedia and Angel Oak
The main advantage of trading using opposite Gabelli Multimedia and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Multimedia 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.| Gabelli Multimedia vs. Virtus AllianzGI Convertible | Gabelli Multimedia vs. The Gabelli Equity | Gabelli Multimedia vs. Oxford Lane Capital | Gabelli Multimedia vs. The Gabelli Utility |
| Angel Oak vs. Eaton Vance National | Angel Oak vs. Invesco High Income | Angel Oak vs. Blackrock Muniholdings Ny | Angel Oak vs. Nuveen California Select |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |