Correlation Between Exxon and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Exxon and Angel Oak 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 Exxon and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exxon Mobil Corp and Angel Oak Funds, you can compare the effects of market volatilities on Exxon and Angel Oak 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 Exxon with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and Angel Oak.
Diversification Opportunities for Exxon and Angel Oak
Very good diversification
The 3 months correlation between Exxon and Angel is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and Angel Oak Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Funds and Exxon 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 Exxon Mobil Corp are associated (or correlated) with Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Funds has no effect on the direction of Exxon i.e., Exxon and Angel Oak go up and down completely randomly.
Pair Corralation between Exxon and Angel Oak
Considering the 90-day investment horizon Exxon Mobil Corp is expected to generate 4.32 times more return on investment than Angel Oak. However, Exxon is 4.32 times more volatile than Angel Oak Funds. It trades about 0.04 of its potential returns per unit of risk. Angel Oak Funds is currently generating about 0.12 per unit of risk. If you would invest 11,130 in Exxon Mobil Corp on September 3, 2024 and sell it today you would earn a total of 666.00 from holding Exxon Mobil Corp or generate 5.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exxon Mobil Corp vs. Angel Oak Funds
Performance |
| Timeline |
| Exxon Mobil Corp |
| Angel Oak Funds |
Exxon and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxon and Angel Oak
The main advantage of trading using opposite Exxon and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak's long position.The idea behind Exxon Mobil Corp and Angel Oak Funds pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Angel Oak vs. Valued Advisers Trust | Angel Oak vs. Columbia Diversified Fixed | Angel Oak vs. Principal Exchange Traded Funds | Angel Oak vs. Doubleline Etf Trust |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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