Correlation Between Nationwide and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Nationwide 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 Nationwide and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nationwide E Plus and Angel Oak Financial, you can compare the effects of market volatilities on Nationwide 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 Nationwide with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nationwide and Angel Oak.
Diversification Opportunities for Nationwide and Angel Oak
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nationwide and Angel is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Nationwide E Plus 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 Nationwide 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 Nationwide E Plus 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 Nationwide i.e., Nationwide and Angel Oak go up and down completely randomly.
Pair Corralation between Nationwide and Angel Oak
Assuming the 90 days horizon Nationwide E Plus is expected to generate 1.29 times more return on investment than Angel Oak. However, Nationwide is 1.29 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 Nationwide E Plus on September 4, 2024 and sell it today you would earn a total of 7.00 from holding Nationwide E Plus or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Nationwide E Plus vs. Angel Oak Financial
Performance |
| Timeline |
| Nationwide E Plus |
| Angel Oak Financial |
Nationwide and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nationwide and Angel Oak
The main advantage of trading using opposite Nationwide and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nationwide 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.| Nationwide vs. Fidelity Advisor Gold | Nationwide vs. Goldman Sachs Clean | Nationwide vs. Short Precious Metals | Nationwide vs. Global Gold Fund |
| Angel Oak vs. Vanguard Total Stock | Angel Oak vs. Vanguard 500 Index | Angel Oak vs. Vanguard Total Stock | Angel Oak vs. Vanguard Total Stock |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |