Correlation Between Western Asset and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Western Asset 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 Western Asset and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset Diversified and Angel Oak Multi Strategy, you can compare the effects of market volatilities on Western Asset 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 Western Asset with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Angel Oak.
Diversification Opportunities for Western Asset and Angel Oak
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Western and Angel is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset Diversified and Angel Oak Multi Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Multi and Western Asset 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 Western Asset Diversified 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 Multi has no effect on the direction of Western Asset i.e., Western Asset and Angel Oak go up and down completely randomly.
Pair Corralation between Western Asset and Angel Oak
Assuming the 90 days horizon Western Asset Diversified is expected to under-perform the Angel Oak. In addition to that, Western Asset is 1.79 times more volatile than Angel Oak Multi Strategy. It trades about -0.01 of its total potential returns per unit of risk. Angel Oak Multi Strategy is currently generating about 0.11 per unit of volatility. If you would invest 767.00 in Angel Oak Multi Strategy on November 6, 2024 and sell it today you would earn a total of 86.00 from holding Angel Oak Multi Strategy or generate 11.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset Diversified vs. Angel Oak Multi Strategy
Performance |
| Timeline |
| Western Asset Diversified |
| Angel Oak Multi |
Western Asset and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Angel Oak
The main advantage of trading using opposite Western Asset and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset 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.| Western Asset vs. Advent Claymore Convertible | Western Asset vs. Putnam Convertible Securities | Western Asset vs. Virtus Convertible | Western Asset vs. Columbia Convertible Securities |
| Angel Oak vs. Hewitt Money Market | Angel Oak vs. Dws Government Money | Angel Oak vs. Aig Government Money | Angel Oak vs. Ab Government Exchange |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |