Correlation Between Angel Oak and Teton Westwood
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Teton Westwood 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 Teton Westwood 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 Teton Westwood Equity, you can compare the effects of market volatilities on Angel Oak and Teton Westwood 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 Teton Westwood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Teton Westwood.
Diversification Opportunities for Angel Oak and Teton Westwood
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Angel and Teton is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Teton Westwood Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teton Westwood Equity 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 Teton Westwood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teton Westwood Equity has no effect on the direction of Angel Oak i.e., Angel Oak and Teton Westwood go up and down completely randomly.
Pair Corralation between Angel Oak and Teton Westwood
Assuming the 90 days horizon Angel Oak Financial is expected to generate 0.12 times more return on investment than Teton Westwood. However, Angel Oak Financial is 8.08 times less risky than Teton Westwood. It trades about 0.11 of its potential returns per unit of risk. Teton Westwood Equity is currently generating about -0.25 per unit of risk. If you would invest 1,408 in Angel Oak Financial on September 12, 2024 and sell it today you would earn a total of 7.00 from holding Angel Oak Financial or generate 0.5% 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. Teton Westwood Equity
Performance |
| Timeline |
| Angel Oak Financial |
| Teton Westwood Equity |
Angel Oak and Teton Westwood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Teton Westwood
The main advantage of trading using opposite Angel Oak and Teton Westwood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Teton Westwood 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 Teton Westwood will offset losses from the drop in Teton Westwood'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 |
| Teton Westwood vs. Gabelli Global Financial | Teton Westwood vs. Angel Oak Financial | Teton Westwood vs. Royce Global Financial | Teton Westwood vs. Fidelity Advisor 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |