Correlation Between AG Mortgage and Angel Oak
Can any of the company-specific risk be diversified away by investing in both AG 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 AG 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 AG Mortgage Investment and Angel Oak Mortgage, you can compare the effects of market volatilities on AG 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 AG Mortgage with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of AG Mortgage and Angel Oak.
Diversification Opportunities for AG Mortgage and Angel Oak
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MITT-PC and Angel is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding AG Mortgage Investment and Angel Oak Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Mortgage and AG 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 AG Mortgage Investment 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 Mortgage has no effect on the direction of AG Mortgage i.e., AG Mortgage and Angel Oak go up and down completely randomly.
Pair Corralation between AG Mortgage and Angel Oak
Assuming the 90 days trading horizon AG Mortgage is expected to generate 8.47 times less return on investment than Angel Oak. But when comparing it to its historical volatility, AG Mortgage Investment is 8.63 times less risky than Angel Oak. It trades about 0.2 of its potential returns per unit of risk. Angel Oak Mortgage is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 895.00 in Angel Oak Mortgage on August 28, 2024 and sell it today you would earn a total of 66.00 from holding Angel Oak Mortgage or generate 7.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
AG Mortgage Investment vs. Angel Oak Mortgage
Performance |
Timeline |
AG Mortgage Investment |
Angel Oak Mortgage |
AG Mortgage and Angel Oak Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AG Mortgage and Angel Oak
The main advantage of trading using opposite AG Mortgage and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AG 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.AG Mortgage vs. Annaly Capital Management | AG Mortgage vs. Invesco Mortgage Capital | AG Mortgage vs. Invesco Mortgage Capital | AG Mortgage vs. Chimera Investment |
Angel Oak vs. Granite Point Mortgage | Angel Oak vs. MFA Financial | Angel Oak vs. Two Harbors Investments | Angel Oak vs. PennyMac Mortgage Investment |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |