Correlation Between Angel Oak and Ftfa Franklin
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Ftfa Franklin 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 Ftfa Franklin 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 Ftfa Franklin Templeton Growth, you can compare the effects of market volatilities on Angel Oak and Ftfa Franklin 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 Ftfa Franklin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Ftfa Franklin.
Diversification Opportunities for Angel Oak and Ftfa Franklin
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Angel and Ftfa is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Ftfa Franklin Templeton Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ftfa Franklin Templeton 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 Ftfa Franklin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ftfa Franklin Templeton has no effect on the direction of Angel Oak i.e., Angel Oak and Ftfa Franklin go up and down completely randomly.
Pair Corralation between Angel Oak and Ftfa Franklin
Assuming the 90 days horizon Angel Oak Financial is expected to generate 0.29 times more return on investment than Ftfa Franklin. However, Angel Oak Financial is 3.51 times less risky than Ftfa Franklin. It trades about -0.11 of its potential returns per unit of risk. Ftfa Franklin Templeton Growth is currently generating about -0.04 per unit of risk. If you would invest 1,408 in Angel Oak Financial on September 26, 2024 and sell it today you would lose (6.00) from holding Angel Oak Financial or give up 0.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Financial vs. Ftfa Franklin Templeton Growth
Performance |
| Timeline |
| Angel Oak Financial |
| Ftfa Franklin Templeton |
Angel Oak and Ftfa Franklin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Ftfa Franklin
The main advantage of trading using opposite Angel Oak and Ftfa Franklin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Ftfa Franklin 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 Ftfa Franklin will offset losses from the drop in Ftfa Franklin'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 |
| Ftfa Franklin vs. Icon Financial Fund | Ftfa Franklin vs. Gabelli Global Financial | Ftfa Franklin vs. Goldman Sachs Financial | Ftfa Franklin vs. Angel Oak 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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