Correlation Between Columbia Emerging and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Columbia Emerging 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 Columbia Emerging and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Emerging Markets and Angel Oak Financial, you can compare the effects of market volatilities on Columbia Emerging 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 Columbia Emerging with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Emerging and Angel Oak.
Diversification Opportunities for Columbia Emerging and Angel Oak
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Columbia and Angel is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Emerging Markets 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 Columbia Emerging 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 Columbia Emerging Markets 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 Columbia Emerging i.e., Columbia Emerging and Angel Oak go up and down completely randomly.
Pair Corralation between Columbia Emerging and Angel Oak
Assuming the 90 days horizon Columbia Emerging Markets is expected to generate 1.61 times more return on investment than Angel Oak. However, Columbia Emerging is 1.61 times more volatile than Angel Oak Financial. It trades about 0.11 of its potential returns per unit of risk. Angel Oak Financial is currently generating about 0.04 per unit of risk. If you would invest 851.00 in Columbia Emerging Markets on September 12, 2024 and sell it today you would earn a total of 119.00 from holding Columbia Emerging Markets or generate 13.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Columbia Emerging Markets vs. Angel Oak Financial
Performance |
| Timeline |
| Columbia Emerging Markets |
| Angel Oak Financial |
Columbia Emerging and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Emerging and Angel Oak
The main advantage of trading using opposite Columbia Emerging and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Emerging 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.| Columbia Emerging vs. Jpmorgan Diversified Fund | Columbia Emerging vs. Western Asset Diversified | Columbia Emerging vs. Wilmington Diversified Income | Columbia Emerging vs. Guggenheim Diversified Income |
| Angel Oak vs. Huber Capital Diversified | Angel Oak vs. Western Asset Diversified | Angel Oak vs. Sentinel Small Pany | Angel Oak vs. Blackrock Sm Cap |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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