Correlation Between Angel Oak and Boston Mon
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Boston Mon 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 Boston Mon 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 Boston Mon International, you can compare the effects of market volatilities on Angel Oak and Boston Mon 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 Boston Mon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Boston Mon.
Diversification Opportunities for Angel Oak and Boston Mon
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Angel and Boston is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Boston Mon International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Mon 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 Boston Mon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Mon International has no effect on the direction of Angel Oak i.e., Angel Oak and Boston Mon go up and down completely randomly.
Pair Corralation between Angel Oak and Boston Mon
Assuming the 90 days horizon Angel Oak Financial is expected to generate 0.28 times more return on investment than Boston Mon. However, Angel Oak Financial is 3.54 times less risky than Boston Mon. It trades about 0.1 of its potential returns per unit of risk. Boston Mon International is currently generating about -0.15 per unit of risk. If you would invest 1,403 in Angel Oak Financial on September 13, 2024 and sell it today you would earn a total of 12.00 from holding Angel Oak Financial or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Financial vs. Boston Mon International
Performance |
| Timeline |
| Angel Oak Financial |
| Boston Mon International |
Angel Oak and Boston Mon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Boston Mon
The main advantage of trading using opposite Angel Oak and Boston Mon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Boston Mon 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 Boston Mon will offset losses from the drop in Boston Mon's long position.| Angel Oak vs. Shelton Emerging Markets | Angel Oak vs. Pace International Emerging | Angel Oak vs. Rbc Emerging Markets | Angel Oak vs. Vy Jpmorgan Emerging |
| Boston Mon vs. Transamerica Financial Life | Boston Mon vs. Angel Oak Financial | Boston Mon vs. Gabelli Global Financial | Boston Mon vs. Icon Financial Fund |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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