Correlation Between 1290 Gamco and Angel Oak
Can any of the company-specific risk be diversified away by investing in both 1290 Gamco 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 1290 Gamco and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 1290 Gamco Smallmid and Angel Oak Multi Strategy, you can compare the effects of market volatilities on 1290 Gamco 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 1290 Gamco with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1290 Gamco and Angel Oak.
Diversification Opportunities for 1290 Gamco and Angel Oak
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 1290 and Angel is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding 1290 Gamco Smallmid 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 1290 Gamco 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 1290 Gamco Smallmid 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 1290 Gamco i.e., 1290 Gamco and Angel Oak go up and down completely randomly.
Pair Corralation between 1290 Gamco and Angel Oak
Assuming the 90 days horizon 1290 Gamco Smallmid is expected to generate 5.83 times more return on investment than Angel Oak. However, 1290 Gamco is 5.83 times more volatile than Angel Oak Multi Strategy. It trades about 0.05 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 1,472 in 1290 Gamco Smallmid on August 29, 2024 and sell it today you would earn a total of 440.00 from holding 1290 Gamco Smallmid or generate 29.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
1290 Gamco Smallmid vs. Angel Oak Multi Strategy
Performance |
| Timeline |
| 1290 Gamco Smallmid |
| Angel Oak Multi |
1290 Gamco and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1290 Gamco and Angel Oak
The main advantage of trading using opposite 1290 Gamco and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1290 Gamco 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.| 1290 Gamco vs. Ab Value Fund | 1290 Gamco vs. Aam Select Income | 1290 Gamco vs. Western Asset Municipal | 1290 Gamco vs. Scharf Global Opportunity |
| Angel Oak vs. Pimco Income Fund | Angel Oak vs. HUMANA INC | Angel Oak vs. Aquagold International | Angel Oak vs. Barloworld Ltd ADR |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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