Correlation Between Angel Oak and Nationwide Inflation
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Nationwide Inflation 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 Nationwide Inflation 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 Nationwide Inflation Protected Securities, you can compare the effects of market volatilities on Angel Oak and Nationwide Inflation 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 Nationwide Inflation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Nationwide Inflation.
Diversification Opportunities for Angel Oak and Nationwide Inflation
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Angel and Nationwide is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Nationwide Inflation Protected in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Inflation 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 Nationwide Inflation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Inflation has no effect on the direction of Angel Oak i.e., Angel Oak and Nationwide Inflation go up and down completely randomly.
Pair Corralation between Angel Oak and Nationwide Inflation
Assuming the 90 days horizon Angel Oak is expected to generate 6.97 times less return on investment than Nationwide Inflation. In addition to that, Angel Oak is 1.0 times more volatile than Nationwide Inflation Protected Securities. It trades about 0.03 of its total potential returns per unit of risk. Nationwide Inflation Protected Securities is currently generating about 0.24 per unit of volatility. If you would invest 882.00 in Nationwide Inflation Protected Securities on October 28, 2024 and sell it today you would earn a total of 9.00 from holding Nationwide Inflation Protected Securities or generate 1.02% 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. Nationwide Inflation Protected
Performance |
| Timeline |
| Angel Oak Financial |
| Nationwide Inflation |
Angel Oak and Nationwide Inflation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Nationwide Inflation
The main advantage of trading using opposite Angel Oak and Nationwide Inflation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Nationwide Inflation 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 Nationwide Inflation will offset losses from the drop in Nationwide Inflation's long position.| Angel Oak vs. Calamos Dynamic Convertible | Angel Oak vs. Absolute Convertible Arbitrage | Angel Oak vs. Gabelli Convertible And | Angel Oak vs. Lord Abbett Convertible |
| Nationwide Inflation vs. Voya High Yield | Nationwide Inflation vs. Jpmorgan High Yield | Nationwide Inflation vs. Barings High Yield | Nationwide Inflation vs. Neuberger Berman Income |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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