Correlation Between Pimco Income and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Pimco Income 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 Pimco Income and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pimco Income Fund and Angel Oak Multi Strategy, you can compare the effects of market volatilities on Pimco Income 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 Pimco Income with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pimco Income and Angel Oak.
Diversification Opportunities for Pimco Income and Angel Oak
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pimco and Angel is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Pimco Income Fund 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 Pimco Income 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 Pimco Income Fund 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 Pimco Income i.e., Pimco Income and Angel Oak go up and down completely randomly.
Pair Corralation between Pimco Income and Angel Oak
Assuming the 90 days horizon Pimco Income is expected to generate 1.26 times less return on investment than Angel Oak. In addition to that, Pimco Income is 1.35 times more volatile than Angel Oak Multi Strategy. It trades about 0.09 of its total potential returns per unit of risk. Angel Oak Multi Strategy is currently generating about 0.16 per unit of volatility. If you would invest 808.00 in Angel Oak Multi Strategy on August 27, 2024 and sell it today you would earn a total of 46.00 from holding Angel Oak Multi Strategy or generate 5.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pimco Income Fund vs. Angel Oak Multi Strategy
Performance |
| Timeline |
| Pimco Income |
| Angel Oak Multi |
Pimco Income and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pimco Income and Angel Oak
The main advantage of trading using opposite Pimco Income and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pimco Income 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.| Pimco Income vs. Aqr Long Short Equity | Pimco Income vs. Legg Mason Partners | Pimco Income vs. Origin Emerging Markets | Pimco Income vs. Sp Midcap Index |
| Angel Oak vs. Pace Smallmedium Value | Angel Oak vs. Ab Discovery Value | Angel Oak vs. Lord Abbett Small | Angel Oak vs. Fpa Queens Road |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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