Correlation Between Nuveen Mortgage and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Nuveen Mortgage 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 Nuveen Mortgage and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuveen Mortgage Opportunity and Angel Oak Financial, you can compare the effects of market volatilities on Nuveen Mortgage 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 Nuveen Mortgage with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Mortgage and Angel Oak.
Diversification Opportunities for Nuveen Mortgage and Angel Oak
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nuveen and Angel is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Mortgage Opportunity 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 Nuveen Mortgage 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 Nuveen Mortgage Opportunity 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 Nuveen Mortgage i.e., Nuveen Mortgage and Angel Oak go up and down completely randomly.
Pair Corralation between Nuveen Mortgage and Angel Oak
Considering the 90-day investment horizon Nuveen Mortgage Opportunity is expected to generate 1.03 times more return on investment than Angel Oak. However, Nuveen Mortgage is 1.03 times more volatile than Angel Oak Financial. It trades about 0.13 of its potential returns per unit of risk. Angel Oak Financial is currently generating about -0.18 per unit of risk. If you would invest 1,802 in Nuveen Mortgage Opportunity on August 28, 2024 and sell it today you would earn a total of 23.00 from holding Nuveen Mortgage Opportunity or generate 1.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuveen Mortgage Opportunity vs. Angel Oak Financial
Performance |
| Timeline |
| Nuveen Mortgage Oppo |
| Angel Oak Financial |
Nuveen Mortgage and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuveen Mortgage and Angel Oak
The main advantage of trading using opposite Nuveen Mortgage and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Mortgage 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.| Nuveen Mortgage vs. Western Asset High | Nuveen Mortgage vs. Pioneer Municipal High | Nuveen Mortgage vs. The Gabelli Equity | Nuveen Mortgage vs. Eaton Vance National |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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