Correlation Between Angel Oak and Siit Emerging
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Siit Emerging 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 Siit Emerging 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 Siit Emerging Markets, you can compare the effects of market volatilities on Angel Oak and Siit Emerging 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 Siit Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Siit Emerging.
Diversification Opportunities for Angel Oak and Siit Emerging
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Angel and Siit is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Siit Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Emerging Markets 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 Siit Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Emerging Markets has no effect on the direction of Angel Oak i.e., Angel Oak and Siit Emerging go up and down completely randomly.
Pair Corralation between Angel Oak and Siit Emerging
Assuming the 90 days horizon Angel Oak Financial is expected to generate 0.21 times more return on investment than Siit Emerging. However, Angel Oak Financial is 4.81 times less risky than Siit Emerging. It trades about -0.09 of its potential returns per unit of risk. Siit Emerging Markets is currently generating about -0.19 per unit of risk. If you would invest 1,408 in Angel Oak Financial on September 24, 2024 and sell it today you would lose (5.00) from holding Angel Oak Financial or give up 0.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Financial vs. Siit Emerging Markets
Performance |
| Timeline |
| Angel Oak Financial |
| Siit Emerging Markets |
Angel Oak and Siit Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Siit Emerging
The main advantage of trading using opposite Angel Oak and Siit Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Siit Emerging 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 Siit Emerging will offset losses from the drop in Siit Emerging's long position.| Angel Oak vs. Vanguard Total Stock | Angel Oak vs. Vanguard 500 Index | Angel Oak vs. Vanguard Total Stock | Angel Oak vs. Vanguard Total Stock |
| Siit Emerging vs. Nasdaq 100 Index Fund | Siit Emerging vs. Multimedia Portfolio Multimedia | Siit Emerging vs. Rbb Fund | Siit Emerging vs. Issachar Fund Class |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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