Correlation Between Angel Oak and Ambrus Core
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Ambrus Core 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 Ambrus Core 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 Ambrus Core Bond, you can compare the effects of market volatilities on Angel Oak and Ambrus Core 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 Ambrus Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Ambrus Core.
Diversification Opportunities for Angel Oak and Ambrus Core
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Angel and Ambrus is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Ambrus Core Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambrus Core Bond 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 Ambrus Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambrus Core Bond has no effect on the direction of Angel Oak i.e., Angel Oak and Ambrus Core go up and down completely randomly.
Pair Corralation between Angel Oak and Ambrus Core
Assuming the 90 days horizon Angel Oak Financial is expected to under-perform the Ambrus Core. In addition to that, Angel Oak is 1.07 times more volatile than Ambrus Core Bond. It trades about -0.04 of its total potential returns per unit of risk. Ambrus Core Bond is currently generating about 0.26 per unit of volatility. If you would invest 987.00 in Ambrus Core Bond on November 27, 2024 and sell it today you would earn a total of 9.00 from holding Ambrus Core Bond or generate 0.91% 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. Ambrus Core Bond
Performance |
| Timeline |
| Angel Oak Financial |
| Ambrus Core Bond |
Angel Oak and Ambrus Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Ambrus Core
The main advantage of trading using opposite Angel Oak and Ambrus Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Ambrus Core 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 Ambrus Core will offset losses from the drop in Ambrus Core's long position.| Angel Oak vs. American Funds Conservative | Angel Oak vs. Jhancock Diversified Macro | Angel Oak vs. Aqr Diversified Arbitrage | Angel Oak vs. Voya Solution Conservative |
| Ambrus Core vs. Ab Bond Inflation | Ambrus Core vs. Fidelity Sai Inflationfocused | Ambrus Core vs. Ab Bond Inflation | Ambrus Core vs. The Hartford Inflation |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |