Correlation Between Angel Oak and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Eaton Vance 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 Eaton Vance 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 Eaton Vance Minnesota, you can compare the effects of market volatilities on Angel Oak and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Eaton Vance.
Diversification Opportunities for Angel Oak and Eaton Vance
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Angel and Eaton is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Eaton Vance Minnesota in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Minnesota 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 Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Minnesota has no effect on the direction of Angel Oak i.e., Angel Oak and Eaton Vance go up and down completely randomly.
Pair Corralation between Angel Oak and Eaton Vance
Assuming the 90 days horizon Angel Oak Financial is expected to generate 0.71 times more return on investment than Eaton Vance. However, Angel Oak Financial is 1.41 times less risky than Eaton Vance. It trades about 0.11 of its potential returns per unit of risk. Eaton Vance Minnesota is currently generating about 0.04 per unit of risk. If you would invest 1,397 in Angel Oak Financial on September 12, 2024 and sell it today you would earn a total of 18.00 from holding Angel Oak Financial or generate 1.29% 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. Eaton Vance Minnesota
Performance |
| Timeline |
| Angel Oak Financial |
| Eaton Vance Minnesota |
Angel Oak and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Eaton Vance
The main advantage of trading using opposite Angel Oak and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance'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 |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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