Correlation Between Angel Oak and Franklin International
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Franklin International 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 Franklin International 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 Franklin International Growth, you can compare the effects of market volatilities on Angel Oak and Franklin International 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 Franklin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Franklin International.
Diversification Opportunities for Angel Oak and Franklin International
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Angel and Franklin is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Franklin International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin International 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 Franklin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin International has no effect on the direction of Angel Oak i.e., Angel Oak and Franklin International go up and down completely randomly.
Pair Corralation between Angel Oak and Franklin International
Assuming the 90 days horizon Angel Oak Financial is expected to under-perform the Franklin International. But the mutual fund apears to be less risky and, when comparing its historical volatility, Angel Oak Financial is 4.43 times less risky than Franklin International. The mutual fund trades about -0.05 of its potential returns per unit of risk. The Franklin International Growth is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,521 in Franklin International Growth on September 3, 2024 and sell it today you would earn a total of 233.00 from holding Franklin International Growth or generate 15.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Financial vs. Franklin International Growth
Performance |
| Timeline |
| Angel Oak Financial |
| Franklin International |
Angel Oak and Franklin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Franklin International
The main advantage of trading using opposite Angel Oak and Franklin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Franklin International 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 Franklin International will offset losses from the drop in Franklin International's long position.| Angel Oak vs. Omni Small Cap Value | Angel Oak vs. T Rowe Price | Angel Oak vs. Commonwealth Global Fund | Angel Oak vs. Nasdaq 100 Fund Class |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |