Correlation Between AG Mortgage and Angel Oak

Specify exactly 2 symbols:
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 Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

AG Mortgage Investment  vs.  Angel Oak Mortgage

 Performance 
       Timeline  
AG Mortgage Investment 

Risk-Adjusted Performance

16 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in AG Mortgage Investment are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, AG Mortgage is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.
Angel Oak Mortgage 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Angel Oak Mortgage has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's primary indicators remain relatively invariable which may send shares a bit higher in December 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

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.
The idea behind AG Mortgage Investment and Angel Oak Mortgage pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk 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