Correlation Between Angel Oak and Sterling Capital
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Sterling Capital 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 Sterling Capital 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 Sterling Capital Porate, you can compare the effects of market volatilities on Angel Oak and Sterling Capital 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 Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Sterling Capital.
Diversification Opportunities for Angel Oak and Sterling Capital
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Angel and Sterling is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Sterling Capital Porate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Porate 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 Sterling Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling Capital Porate has no effect on the direction of Angel Oak i.e., Angel Oak and Sterling Capital go up and down completely randomly.
Pair Corralation between Angel Oak and Sterling Capital
Assuming the 90 days horizon Angel Oak Financial is expected to under-perform the Sterling Capital. But the mutual fund apears to be less risky and, when comparing its historical volatility, Angel Oak Financial is 3.15 times less risky than Sterling Capital. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Sterling Capital Porate is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 641.00 in Sterling Capital Porate on September 14, 2024 and sell it today you would earn a total of 65.00 from holding Sterling Capital Porate or generate 10.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Financial vs. Sterling Capital Porate
Performance |
| Timeline |
| Angel Oak Financial |
| Sterling Capital Porate |
Angel Oak and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Sterling Capital
The main advantage of trading using opposite Angel Oak and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Sterling Capital 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 Sterling Capital will offset losses from the drop in Sterling Capital's long position.| Angel Oak vs. Gabelli Convertible And | Angel Oak vs. Absolute Convertible Arbitrage | Angel Oak vs. Rationalpier 88 Convertible | Angel Oak vs. Virtus Convertible |
| Sterling Capital vs. Gabelli Global Financial | Sterling Capital vs. Goldman Sachs Financial | Sterling Capital vs. Angel Oak Financial | Sterling Capital vs. Royce Global Financial |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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