Correlation Between Thornburg International and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Thornburg International 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 Thornburg International and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thornburg International Value and Angel Oak Financial, you can compare the effects of market volatilities on Thornburg International 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 Thornburg International with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thornburg International and Angel Oak.
Diversification Opportunities for Thornburg International and Angel Oak
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thornburg and Angel is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Thornburg International Value 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 Thornburg International 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 Thornburg International Value 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 Thornburg International i.e., Thornburg International and Angel Oak go up and down completely randomly.
Pair Corralation between Thornburg International and Angel Oak
Assuming the 90 days horizon Thornburg International Value is expected to under-perform the Angel Oak. In addition to that, Thornburg International is 4.5 times more volatile than Angel Oak Financial. It trades about -0.03 of its total potential returns per unit of risk. Angel Oak Financial is currently generating about 0.06 per unit of volatility. If you would invest 1,385 in Angel Oak Financial on September 1, 2024 and sell it today you would earn a total of 23.00 from holding Angel Oak Financial or generate 1.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Thornburg International Value vs. Angel Oak Financial
Performance |
| Timeline |
| Thornburg International |
| Angel Oak Financial |
Thornburg International and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thornburg International and Angel Oak
The main advantage of trading using opposite Thornburg International and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thornburg International 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.| Thornburg International vs. Thornburg E Growth | Thornburg International vs. Mainstay Large Cap | Thornburg International vs. Allianzgi Nfj Small Cap | Thornburg International vs. Columbia Mid Cap |
| Angel Oak vs. Vanguard Total Stock | Angel Oak vs. Vanguard 500 Index | Angel Oak vs. Vanguard Total Stock | Angel Oak vs. Vanguard Total Stock |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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