Correlation Between Angel Oak and Bear Profund
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Bear Profund 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 Bear Profund 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 Bear Profund Bear, you can compare the effects of market volatilities on Angel Oak and Bear Profund 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 Bear Profund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Bear Profund.
Diversification Opportunities for Angel Oak and Bear Profund
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Angel and Bear is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Bear Profund Bear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bear Profund Bear 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 Bear Profund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bear Profund Bear has no effect on the direction of Angel Oak i.e., Angel Oak and Bear Profund go up and down completely randomly.
Pair Corralation between Angel Oak and Bear Profund
Assuming the 90 days horizon Angel Oak Financial is expected to generate 0.23 times more return on investment than Bear Profund. However, Angel Oak Financial is 4.36 times less risky than Bear Profund. It trades about 0.02 of its potential returns per unit of risk. Bear Profund Bear is currently generating about -0.13 per unit of risk. If you would invest 1,397 in Angel Oak Financial on August 24, 2024 and sell it today you would earn a total of 1.00 from holding Angel Oak Financial or generate 0.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Financial vs. Bear Profund Bear
Performance |
| Timeline |
| Angel Oak Financial |
| Bear Profund Bear |
Angel Oak and Bear Profund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Bear Profund
The main advantage of trading using opposite Angel Oak and Bear Profund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Bear Profund 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 Bear Profund will offset losses from the drop in Bear Profund's long position.| Angel Oak vs. Ishares Municipal Bond | Angel Oak vs. Metropolitan West Porate | Angel Oak vs. California Bond Fund | Angel Oak vs. T Rowe Price |
| Bear Profund vs. Blackrock Financial Institutions | Bear Profund vs. Royce Global Financial | Bear Profund vs. Angel Oak Financial | Bear Profund vs. Gabelli Global 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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