Correlation Between Angel Oak and Bny Mellon
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Bny Mellon 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 Bny Mellon 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 Bny Mellon Intermediate, you can compare the effects of market volatilities on Angel Oak and Bny Mellon 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 Bny Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Bny Mellon.
Diversification Opportunities for Angel Oak and Bny Mellon
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Angel and Bny is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Bny Mellon Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bny Mellon Intermediate 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 Bny Mellon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bny Mellon Intermediate has no effect on the direction of Angel Oak i.e., Angel Oak and Bny Mellon go up and down completely randomly.
Pair Corralation between Angel Oak and Bny Mellon
Assuming the 90 days horizon Angel Oak Financial is expected to generate 0.98 times more return on investment than Bny Mellon. However, Angel Oak Financial is 1.02 times less risky than Bny Mellon. It trades about 0.1 of its potential returns per unit of risk. Bny Mellon Intermediate is currently generating about -0.03 per unit of risk. If you would invest 1,403 in Angel Oak Financial on September 13, 2024 and sell it today you would earn a total of 12.00 from holding Angel Oak Financial or generate 0.86% 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. Bny Mellon Intermediate
Performance |
| Timeline |
| Angel Oak Financial |
| Bny Mellon Intermediate |
Angel Oak and Bny Mellon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Bny Mellon
The main advantage of trading using opposite Angel Oak and Bny Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Bny Mellon 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 Bny Mellon will offset losses from the drop in Bny Mellon'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 |
| Bny Mellon vs. Bny Mellon Massachusetts | Bny Mellon vs. Bny Mellon Massachusetts | Bny Mellon vs. Bny Mellon Emerging | Bny Mellon vs. Bny Mellon New |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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