Correlation Between Lind Capital and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Lind Capital 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 Lind Capital and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lind Capital Partners and Angel Oak Financial, you can compare the effects of market volatilities on Lind Capital 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 Lind Capital with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lind Capital and Angel Oak.
Diversification Opportunities for Lind Capital and Angel Oak
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lind and Angel is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Lind Capital Partners 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 Lind Capital 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 Lind Capital Partners 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 Lind Capital i.e., Lind Capital and Angel Oak go up and down completely randomly.
Pair Corralation between Lind Capital and Angel Oak
Assuming the 90 days horizon Lind Capital Partners is expected to generate 1.31 times more return on investment than Angel Oak. However, Lind Capital is 1.31 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 0.14 per unit of risk. If you would invest 894.00 in Lind Capital Partners on September 3, 2024 and sell it today you would earn a total of 7.00 from holding Lind Capital Partners or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lind Capital Partners vs. Angel Oak Financial
Performance |
| Timeline |
| Lind Capital Partners |
| Angel Oak Financial |
Lind Capital and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lind Capital and Angel Oak
The main advantage of trading using opposite Lind Capital and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lind Capital 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.| Lind Capital vs. Vanguard Total Stock | Lind Capital vs. Vanguard 500 Index | Lind Capital vs. Vanguard Total Stock | Lind Capital vs. Vanguard Total Stock |
| 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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