Correlation Between Angel Oak and Blackrock Emerging

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Blackrock Emerging 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 Blackrock Emerging 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 Blackrock Emerging Markets, you can compare the effects of market volatilities on Angel Oak and Blackrock Emerging 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 Blackrock Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Blackrock Emerging.

Diversification Opportunities for Angel Oak and Blackrock Emerging

0.04
  Correlation Coefficient

Significant diversification

The 3 months correlation between Angel and Blackrock is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Blackrock Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Emerging 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 Blackrock Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Emerging has no effect on the direction of Angel Oak i.e., Angel Oak and Blackrock Emerging go up and down completely randomly.

Pair Corralation between Angel Oak and Blackrock Emerging

Assuming the 90 days horizon Angel Oak Financial is expected to generate 0.23 times more return on investment than Blackrock Emerging. However, Angel Oak Financial is 4.27 times less risky than Blackrock Emerging. It trades about 0.09 of its potential returns per unit of risk. Blackrock Emerging Markets is currently generating about -0.26 per unit of risk. If you would invest  1,401  in Angel Oak Financial on August 30, 2024 and sell it today you would earn a total of  6.00  from holding Angel Oak Financial or generate 0.43% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Angel Oak Financial  vs.  Blackrock Emerging Markets

 Performance 
       Timeline  
Angel Oak Financial 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Angel Oak Financial are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Angel Oak is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Blackrock Emerging 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Blackrock Emerging Markets has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Blackrock Emerging is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Angel Oak and Blackrock Emerging Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Angel Oak and Blackrock Emerging

The main advantage of trading using opposite Angel Oak and Blackrock Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Blackrock Emerging 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 Blackrock Emerging will offset losses from the drop in Blackrock Emerging's long position.
The idea behind Angel Oak Financial and Blackrock Emerging Markets pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

Other Complementary Tools

Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Equity Valuation
Check real value of public entities based on technical and fundamental data
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Transaction History
View history of all your transactions and understand their impact on performance