Correlation Between Angel Oak and Ab Global
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Ab Global 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 Angel Oak and Ab Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Angel Oak Financial and Ab Global Bond, you can compare the effects of market volatilities on Angel Oak and Ab Global 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 Angel Oak with a short position of Ab Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Ab Global.
Diversification Opportunities for Angel Oak and Ab Global
Very weak diversification
The 3 months correlation between Angel and ANAZX is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Ab Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Global Bond and Angel Oak 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 Angel Oak Financial are associated (or correlated) with Ab Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Global Bond has no effect on the direction of Angel Oak i.e., Angel Oak and Ab Global go up and down completely randomly.
Pair Corralation between Angel Oak and Ab Global
Assuming the 90 days horizon Angel Oak Financial is expected to generate 1.24 times more return on investment than Ab Global. However, Angel Oak is 1.24 times more volatile than Ab Global Bond. It trades about -0.12 of its potential returns per unit of risk. Ab Global Bond is currently generating about -0.57 per unit of risk. If you would invest 1,414 in Angel Oak Financial on October 12, 2024 and sell it today you would lose (7.00) from holding Angel Oak Financial or give up 0.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Financial vs. Ab Global Bond
Performance |
| Timeline |
| Angel Oak Financial |
| Ab Global Bond |
Angel Oak and Ab Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Ab Global
The main advantage of trading using opposite Angel Oak and Ab Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Ab Global 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 Ab Global will offset losses from the drop in Ab Global's long position.| Angel Oak vs. Glg Intl Small | Angel Oak vs. Lebenthal Lisanti Small | Angel Oak vs. Touchstone Small Cap | Angel Oak vs. Ab Small Cap |
| Ab Global vs. Financial Industries Fund | Ab Global vs. Blackrock Financial Institutions | Ab Global vs. John Hancock Financial | Ab Global vs. Angel Oak Financial |
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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