Correlation Between Angel Oak and Calvert Bond
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Calvert Bond 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 Calvert Bond 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 Calvert Bond Portfolio, you can compare the effects of market volatilities on Angel Oak and Calvert Bond 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 Calvert Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Calvert Bond.
Diversification Opportunities for Angel Oak and Calvert Bond
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Angel and Calvert is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Calvert Bond Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Bond Portfolio 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 Calvert Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Bond Portfolio has no effect on the direction of Angel Oak i.e., Angel Oak and Calvert Bond go up and down completely randomly.
Pair Corralation between Angel Oak and Calvert Bond
Assuming the 90 days horizon Angel Oak Financial is expected to under-perform the Calvert Bond. But the mutual fund apears to be less risky and, when comparing its historical volatility, Angel Oak Financial is 1.66 times less risky than Calvert Bond. The mutual fund trades about -0.04 of its potential returns per unit of risk. The Calvert Bond Portfolio is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,314 in Calvert Bond Portfolio on October 16, 2024 and sell it today you would earn a total of 102.00 from holding Calvert Bond Portfolio or generate 7.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Financial vs. Calvert Bond Portfolio
Performance |
| Timeline |
| Angel Oak Financial |
| Calvert Bond Portfolio |
Angel Oak and Calvert Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Calvert Bond
The main advantage of trading using opposite Angel Oak and Calvert Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Calvert Bond 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 Calvert Bond will offset losses from the drop in Calvert Bond's long position.| Angel Oak vs. Kinetics Market Opportunities | Angel Oak vs. Dws Emerging Markets | Angel Oak vs. Delaware Limited Term Diversified | Angel Oak vs. Fidelity New Markets |
| Calvert Bond vs. Cref Money Market | Calvert Bond vs. Dws Government Money | Calvert Bond vs. Fidelity Government Money | Calvert Bond vs. Ab Government Exchange |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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