Correlation Between Angel Oak and Sgi Peak
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Sgi Peak 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 Sgi Peak 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 Sgi Peak Growth, you can compare the effects of market volatilities on Angel Oak and Sgi Peak 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 Sgi Peak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Sgi Peak.
Diversification Opportunities for Angel Oak and Sgi Peak
Poor diversification
The 3 months correlation between Angel and Sgi is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Sgi Peak Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sgi Peak Growth 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 Sgi Peak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sgi Peak Growth has no effect on the direction of Angel Oak i.e., Angel Oak and Sgi Peak go up and down completely randomly.
Pair Corralation between Angel Oak and Sgi Peak
Assuming the 90 days horizon Angel Oak Financial is expected to under-perform the Sgi Peak. But the mutual fund apears to be less risky and, when comparing its historical volatility, Angel Oak Financial is 2.89 times less risky than Sgi Peak. The mutual fund trades about -0.03 of its potential returns per unit of risk. The Sgi Peak Growth is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 987.00 in Sgi Peak Growth on September 12, 2024 and sell it today you would earn a total of 304.00 from holding Sgi Peak Growth or generate 30.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Financial vs. Sgi Peak Growth
Performance |
| Timeline |
| Angel Oak Financial |
| Sgi Peak Growth |
Angel Oak and Sgi Peak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Sgi Peak
The main advantage of trading using opposite Angel Oak and Sgi Peak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Sgi Peak 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 Sgi Peak will offset losses from the drop in Sgi Peak's long position.| Angel Oak vs. Huber Capital Diversified | Angel Oak vs. Western Asset Diversified | Angel Oak vs. Sentinel Small Pany | Angel Oak vs. Blackrock Sm Cap |
| Sgi Peak vs. Vanguard Total Stock | Sgi Peak vs. Vanguard 500 Index | Sgi Peak vs. Vanguard Total Stock | Sgi Peak vs. Vanguard Total Stock |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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