Correlation Between Angel Oak and Fidelity Salem
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Fidelity Salem 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 Salem 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 Salem Street, you can compare the effects of market volatilities on Angel Oak and Fidelity Salem 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 Salem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Fidelity Salem.
Diversification Opportunities for Angel Oak and Fidelity Salem
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Angel and Fidelity is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Fidelity Salem Street in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Salem Street 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 Salem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Salem Street has no effect on the direction of Angel Oak i.e., Angel Oak and Fidelity Salem go up and down completely randomly.
Pair Corralation between Angel Oak and Fidelity Salem
Assuming the 90 days horizon Angel Oak Financial is expected to generate 0.2 times more return on investment than Fidelity Salem. However, Angel Oak Financial is 4.9 times less risky than Fidelity Salem. It trades about 0.15 of its potential returns per unit of risk. Fidelity Salem Street is currently generating about -0.08 per unit of risk. If you would invest 1,386 in Angel Oak Financial on September 3, 2024 and sell it today you would earn a total of 25.00 from holding Angel Oak Financial or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Financial vs. Fidelity Salem Street
Performance |
| Timeline |
| Angel Oak Financial |
| Fidelity Salem Street |
Angel Oak and Fidelity Salem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Fidelity Salem
The main advantage of trading using opposite Angel Oak and Fidelity Salem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Fidelity Salem 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 Salem will offset losses from the drop in Fidelity Salem'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 |
| Fidelity Salem vs. Pgim Jennison Diversified | Fidelity Salem vs. Fuller Thaler Behavioral | Fidelity Salem vs. The Gabelli Small | Fidelity Salem vs. Principal Lifetime Hybrid |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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