Correlation Between Angel Oak and Fidelity New
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Fidelity New 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 Fidelity New 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 Fidelity New Markets, you can compare the effects of market volatilities on Angel Oak and Fidelity New 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 Fidelity New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Fidelity New.
Diversification Opportunities for Angel Oak and Fidelity New
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Angel and Fidelity is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Fidelity New Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity New Markets 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 Fidelity New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity New Markets has no effect on the direction of Angel Oak i.e., Angel Oak and Fidelity New go up and down completely randomly.
Pair Corralation between Angel Oak and Fidelity New
Assuming the 90 days horizon Angel Oak Financial is expected to generate 0.67 times more return on investment than Fidelity New. However, Angel Oak Financial is 1.5 times less risky than Fidelity New. It trades about 0.13 of its potential returns per unit of risk. Fidelity New Markets is currently generating about 0.06 per unit of risk. If you would invest 1,389 in Angel Oak Financial on September 4, 2024 and sell it today you would earn a total of 22.00 from holding Angel Oak Financial or generate 1.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Financial vs. Fidelity New Markets
Performance |
| Timeline |
| Angel Oak Financial |
| Fidelity New Markets |
Angel Oak and Fidelity New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Fidelity New
The main advantage of trading using opposite Angel Oak and Fidelity New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Fidelity New 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 Fidelity New will offset losses from the drop in Fidelity New'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 |
| Fidelity New vs. Gmo High Yield | Fidelity New vs. T Rowe Price | Fidelity New vs. Bbh Intermediate Municipal | Fidelity New 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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