Correlation Between Angel Oak and Virtus Kar
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Virtus Kar 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 Virtus Kar 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 Virtus Kar Global, you can compare the effects of market volatilities on Angel Oak and Virtus Kar 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 Virtus Kar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Virtus Kar.
Diversification Opportunities for Angel Oak and Virtus Kar
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Angel and Virtus is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Virtus Kar Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Kar Global 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 Virtus Kar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Kar Global has no effect on the direction of Angel Oak i.e., Angel Oak and Virtus Kar go up and down completely randomly.
Pair Corralation between Angel Oak and Virtus Kar
Assuming the 90 days horizon Angel Oak Financial is expected to generate 0.36 times more return on investment than Virtus Kar. However, Angel Oak Financial is 2.78 times less risky than Virtus Kar. It trades about 0.11 of its potential returns per unit of risk. Virtus Kar Global is currently generating about -0.06 per unit of risk. If you would invest 1,397 in Angel Oak Financial on September 12, 2024 and sell it today you would earn a total of 18.00 from holding Angel Oak Financial or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Angel Oak Financial vs. Virtus Kar Global
Performance |
| Timeline |
| Angel Oak Financial |
| Virtus Kar Global |
Angel Oak and Virtus Kar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Virtus Kar
The main advantage of trading using opposite Angel Oak and Virtus Kar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Virtus Kar 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 Virtus Kar will offset losses from the drop in Virtus Kar'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 |
| Virtus Kar vs. Qs International Equity | Virtus Kar vs. Cutler Equity | Virtus Kar vs. Sarofim Equity | Virtus Kar vs. Artisan Select Equity |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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