Correlation Between Angel Oak and Aqr Long-short
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Aqr Long-short 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 Aqr Long-short 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 Aqr Long Short Equity, you can compare the effects of market volatilities on Angel Oak and Aqr Long-short 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 Aqr Long-short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Aqr Long-short.
Diversification Opportunities for Angel Oak and Aqr Long-short
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Angel and Aqr is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Aqr Long Short Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Long Short 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 Aqr Long-short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Long Short has no effect on the direction of Angel Oak i.e., Angel Oak and Aqr Long-short go up and down completely randomly.
Pair Corralation between Angel Oak and Aqr Long-short
Assuming the 90 days horizon Angel Oak Financial is expected to under-perform the Aqr Long-short. But the mutual fund apears to be less risky and, when comparing its historical volatility, Angel Oak Financial is 2.12 times less risky than Aqr Long-short. The mutual fund trades about -0.05 of its potential returns per unit of risk. The Aqr Long Short Equity is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,063 in Aqr Long Short Equity on August 26, 2024 and sell it today you would earn a total of 644.00 from holding Aqr Long Short Equity or generate 60.58% 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. Aqr Long Short Equity
Performance |
| Timeline |
| Angel Oak Financial |
| Aqr Long Short |
Angel Oak and Aqr Long-short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Aqr Long-short
The main advantage of trading using opposite Angel Oak and Aqr Long-short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Aqr Long-short 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 Aqr Long-short will offset losses from the drop in Aqr Long-short's long position.| Angel Oak vs. Wells Fargo Advantage | Angel Oak vs. Global Gold Fund | Angel Oak vs. Franklin Gold Precious | Angel Oak vs. Invesco Gold Special |
| Aqr Long-short vs. Angel Oak Financial | Aqr Long-short vs. 1919 Financial Services | Aqr Long-short vs. Financials Ultrasector Profund | Aqr Long-short vs. Transamerica Financial Life |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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