Correlation Between Angel Oak and Eventide Gilead
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Eventide Gilead 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 Eventide Gilead 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 Eventide Gilead, you can compare the effects of market volatilities on Angel Oak and Eventide Gilead 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 Eventide Gilead. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Eventide Gilead.
Diversification Opportunities for Angel Oak and Eventide Gilead
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Angel and Eventide is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Eventide Gilead in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eventide Gilead 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 Eventide Gilead. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eventide Gilead has no effect on the direction of Angel Oak i.e., Angel Oak and Eventide Gilead go up and down completely randomly.
Pair Corralation between Angel Oak and Eventide Gilead
Assuming the 90 days horizon Angel Oak is expected to generate 12.36 times less return on investment than Eventide Gilead. But when comparing it to its historical volatility, Angel Oak Financial is 4.96 times less risky than Eventide Gilead. It trades about 0.14 of its potential returns per unit of risk. Eventide Gilead is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 4,915 in Eventide Gilead on September 4, 2024 and sell it today you would earn a total of 422.00 from holding Eventide Gilead or generate 8.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Angel Oak Financial vs. Eventide Gilead
Performance |
| Timeline |
| Angel Oak Financial |
| Eventide Gilead |
Angel Oak and Eventide Gilead Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Eventide Gilead
The main advantage of trading using opposite Angel Oak and Eventide Gilead positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Eventide Gilead 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 Eventide Gilead will offset losses from the drop in Eventide Gilead'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 |
| Eventide Gilead vs. Us Government Plus | Eventide Gilead vs. Blackrock Government Bond | Eventide Gilead vs. Us Government Securities | Eventide Gilead vs. Dunham Porategovernment Bond |
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.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stocks Directory Find actively traded stocks across global markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |