Correlation Between NYSE Composite and Angel Oak
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Angel Oak Multi Strategy, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Angel Oak.
Diversification Opportunities for NYSE Composite and Angel Oak
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and Angel is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Angel Oak Multi Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Multi and NYSE Composite 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 NYSE Composite 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 Multi has no effect on the direction of NYSE Composite i.e., NYSE Composite and Angel Oak go up and down completely randomly.
Pair Corralation between NYSE Composite and Angel Oak
Assuming the 90 days trading horizon NYSE Composite is expected to generate 4.9 times more return on investment than Angel Oak. However, NYSE Composite is 4.9 times more volatile than Angel Oak Multi Strategy. It trades about 0.24 of its potential returns per unit of risk. Angel Oak Multi Strategy is currently generating about 0.0 per unit of risk. If you would invest 1,954,967 in NYSE Composite on August 28, 2024 and sell it today you would earn a total of 67,069 from holding NYSE Composite or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Angel Oak Multi Strategy
Performance |
| Timeline |
NYSE Composite and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Angel Oak Multi Strategy
Pair trading matchups for Angel Oak
Pair Trading with NYSE Composite and Angel Oak
The main advantage of trading using opposite NYSE Composite and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Hooker Furniture | NYSE Composite vs. Hudson Pacific Properties | NYSE Composite vs. Canlan Ice Sports | NYSE Composite vs. Boston Properties |
| Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Doubleline Income Solutions | Angel Oak vs. Angel Oak Ultrashort | Angel Oak vs. Angel Oak Ultrashort |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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