Correlation Between Growth Fund and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Growth Fund 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 Growth Fund and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Of and Angel Oak Multi Strategy, you can compare the effects of market volatilities on Growth Fund 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 Growth Fund with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Angel Oak.
Diversification Opportunities for Growth Fund and Angel Oak
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Growth and Angel is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of 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 Growth Fund 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 Growth Fund Of 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 Growth Fund i.e., Growth Fund and Angel Oak go up and down completely randomly.
Pair Corralation between Growth Fund and Angel Oak
Assuming the 90 days horizon Growth Fund Of is expected to generate 4.84 times more return on investment than Angel Oak. However, Growth Fund is 4.84 times more volatile than Angel Oak Multi Strategy. It trades about 0.12 of its potential returns per unit of risk. Angel Oak Multi Strategy is currently generating about 0.1 per unit of risk. If you would invest 4,738 in Growth Fund Of on August 27, 2024 and sell it today you would earn a total of 3,455 from holding Growth Fund Of or generate 72.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Fund Of vs. Angel Oak Multi Strategy
Performance |
| Timeline |
| Growth Fund |
| Angel Oak Multi |
Growth Fund and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Angel Oak
The main advantage of trading using opposite Growth Fund and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund 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.| Growth Fund vs. Income Fund Of | Growth Fund vs. New World Fund | Growth Fund vs. American Mutual Fund | Growth Fund vs. American Mutual Fund |
| Angel Oak vs. Applied Finance Explorer | Angel Oak vs. Palm Valley Capital | Angel Oak vs. Lsv Small Cap | Angel Oak vs. Northern Small 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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