Correlation Between J Hancock and Angel Oak
Can any of the company-specific risk be diversified away by investing in both J Hancock 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 J Hancock and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between J Hancock Ii and Angel Oak Financial, you can compare the effects of market volatilities on J Hancock 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 J Hancock with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of J Hancock and Angel Oak.
Diversification Opportunities for J Hancock and Angel Oak
Poor diversification
The 3 months correlation between JROUX and Angel is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding J Hancock Ii 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 J Hancock 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 J Hancock Ii 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 J Hancock i.e., J Hancock and Angel Oak go up and down completely randomly.
Pair Corralation between J Hancock and Angel Oak
Assuming the 90 days horizon J Hancock Ii is expected to generate 3.79 times more return on investment than Angel Oak. However, J Hancock is 3.79 times more volatile than Angel Oak Financial. It trades about 0.09 of its potential returns per unit of risk. Angel Oak Financial is currently generating about 0.09 per unit of risk. If you would invest 1,333 in J Hancock Ii on September 3, 2024 and sell it today you would earn a total of 123.00 from holding J Hancock Ii or generate 9.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
J Hancock Ii vs. Angel Oak Financial
Performance |
| Timeline |
| J Hancock Ii |
| Angel Oak Financial |
J Hancock and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with J Hancock and Angel Oak
The main advantage of trading using opposite J Hancock and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if J Hancock 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.| J Hancock vs. Angel Oak Financial | J Hancock vs. California Bond Fund | J Hancock vs. Bbh Intermediate Municipal | J Hancock vs. Versatile Bond Portfolio |
| Angel Oak vs. Omni Small Cap Value | Angel Oak vs. T Rowe Price | Angel Oak vs. Commonwealth Global Fund | Angel Oak vs. Nasdaq 100 Fund Class |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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