Correlation Between Angel Oak and Nuveen Santa
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Nuveen Santa 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 Nuveen Santa 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 Nuveen Santa Barbara, you can compare the effects of market volatilities on Angel Oak and Nuveen Santa 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 Nuveen Santa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Nuveen Santa.
Diversification Opportunities for Angel Oak and Nuveen Santa
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Angel and Nuveen is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Nuveen Santa Barbara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Santa Barbara 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 Nuveen Santa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Santa Barbara has no effect on the direction of Angel Oak i.e., Angel Oak and Nuveen Santa go up and down completely randomly.
Pair Corralation between Angel Oak and Nuveen Santa
Assuming the 90 days horizon Angel Oak is expected to generate 5.21 times less return on investment than Nuveen Santa. But when comparing it to its historical volatility, Angel Oak Financial is 3.4 times less risky than Nuveen Santa. It trades about 0.03 of its potential returns per unit of risk. Nuveen Santa Barbara is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 5,496 in Nuveen Santa Barbara on December 12, 2024 and sell it today you would earn a total of 535.00 from holding Nuveen Santa Barbara or generate 9.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Financial vs. Nuveen Santa Barbara
Performance |
| Timeline |
| Angel Oak Financial |
| Nuveen Santa Barbara |
Angel Oak and Nuveen Santa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Nuveen Santa
The main advantage of trading using opposite Angel Oak and Nuveen Santa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Nuveen Santa 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 Nuveen Santa will offset losses from the drop in Nuveen Santa's long position.| Angel Oak vs. Gabelli Global Financial | ||
| Angel Oak vs. Mesirow Financial Small | ||
| Angel Oak vs. Icon Financial Fund | ||
| Angel Oak vs. Blackrock Financial Institutions |
| Nuveen Santa vs. Rational Dividend Capture | ||
| Nuveen Santa vs. Fsultx | ||
| Nuveen Santa vs. Iaadx | ||
| Nuveen Santa vs. Furyax |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| 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 | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |