Correlation Between Ambrus Core and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Ambrus Core 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 Ambrus Core and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ambrus Core Bond and Angel Oak Financial, you can compare the effects of market volatilities on Ambrus Core 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 Ambrus Core with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambrus Core and Angel Oak.
Diversification Opportunities for Ambrus Core and Angel Oak
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ambrus and Angel is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Ambrus Core Bond 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 Ambrus Core 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 Ambrus Core Bond 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 Ambrus Core i.e., Ambrus Core and Angel Oak go up and down completely randomly.
Pair Corralation between Ambrus Core and Angel Oak
Assuming the 90 days horizon Ambrus Core Bond is expected to generate 0.93 times more return on investment than Angel Oak. However, Ambrus Core Bond is 1.07 times less risky than Angel Oak. It trades about 0.26 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 987.00 in Ambrus Core Bond on November 27, 2024 and sell it today you would earn a total of 9.00 from holding Ambrus Core Bond or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ambrus Core Bond vs. Angel Oak Financial
Performance |
| Timeline |
| Ambrus Core Bond |
| Angel Oak Financial |
Ambrus Core and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambrus Core and Angel Oak
The main advantage of trading using opposite Ambrus Core and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambrus Core 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.| Ambrus Core vs. Ab Bond Inflation | Ambrus Core vs. Fidelity Sai Inflationfocused | Ambrus Core vs. Ab Bond Inflation | Ambrus Core vs. The Hartford Inflation |
| Angel Oak vs. American Funds Conservative | Angel Oak vs. Jhancock Diversified Macro | Angel Oak vs. Aqr Diversified Arbitrage | Angel Oak vs. Voya Solution Conservative |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Global Correlations Find global opportunities by holding instruments from different markets |