Correlation Between Spectrum Advisors and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Spectrum Advisors 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 Spectrum Advisors and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spectrum Advisors Preferred and Angel Oak Multi Strategy, you can compare the effects of market volatilities on Spectrum Advisors 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 Spectrum Advisors with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spectrum Advisors and Angel Oak.
Diversification Opportunities for Spectrum Advisors and Angel Oak
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Spectrum and Angel is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Spectrum Advisors Preferred 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 Spectrum Advisors 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 Spectrum Advisors Preferred 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 Spectrum Advisors i.e., Spectrum Advisors and Angel Oak go up and down completely randomly.
Pair Corralation between Spectrum Advisors and Angel Oak
Assuming the 90 days horizon Spectrum Advisors Preferred is expected to generate 4.56 times more return on investment than Angel Oak. However, Spectrum Advisors is 4.56 times more volatile than Angel Oak Multi Strategy. It trades about 0.07 of its potential returns per unit of risk. Angel Oak Multi Strategy is currently generating about 0.15 per unit of risk. If you would invest 1,583 in Spectrum Advisors Preferred on August 26, 2024 and sell it today you would earn a total of 250.00 from holding Spectrum Advisors Preferred or generate 15.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spectrum Advisors Preferred vs. Angel Oak Multi Strategy
Performance |
| Timeline |
| Spectrum Advisors |
| Angel Oak Multi |
Spectrum Advisors and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spectrum Advisors and Angel Oak
The main advantage of trading using opposite Spectrum Advisors and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spectrum Advisors 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.| Spectrum Advisors vs. Eagle Mlp Strategy | Spectrum Advisors vs. Western Assets Emerging | Spectrum Advisors vs. Investec Emerging Markets | Spectrum Advisors vs. Pnc Emerging Markets |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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