Correlation Between Angel Oak and Avantis International
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Avantis International 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 Avantis International 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 Avantis International Equity, you can compare the effects of market volatilities on Angel Oak and Avantis International 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 Avantis International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Avantis International.
Diversification Opportunities for Angel Oak and Avantis International
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Angel and Avantis is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Avantis International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avantis International 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 Avantis International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avantis International has no effect on the direction of Angel Oak i.e., Angel Oak and Avantis International go up and down completely randomly.
Pair Corralation between Angel Oak and Avantis International
Assuming the 90 days horizon Angel Oak Financial is expected to generate 0.29 times more return on investment than Avantis International. However, Angel Oak Financial is 3.49 times less risky than Avantis International. It trades about 0.14 of its potential returns per unit of risk. Avantis International Equity is currently generating about 0.02 per unit of risk. If you would invest 1,402 in Angel Oak Financial on September 4, 2024 and sell it today you would earn a total of 9.00 from holding Angel Oak Financial or generate 0.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Angel Oak Financial vs. Avantis International Equity
Performance |
| Timeline |
| Angel Oak Financial |
| Avantis International |
Angel Oak and Avantis International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Avantis International
The main advantage of trading using opposite Angel Oak and Avantis International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Avantis International 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 Avantis International will offset losses from the drop in Avantis International's long position.| Angel Oak vs. Vanguard Total Stock | Angel Oak vs. Vanguard 500 Index | Angel Oak vs. Vanguard Total Stock | Angel Oak vs. Vanguard Total Stock |
| Avantis International vs. Touchstone Premium Yield | Avantis International vs. Multisector Bond Sma | Avantis International vs. Angel Oak Financial | Avantis International vs. Bbh Intermediate Municipal |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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