Correlation Between Investec Emerging and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Investec Emerging 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 Investec Emerging and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investec Emerging Markets and Angel Oak Multi Strategy, you can compare the effects of market volatilities on Investec Emerging 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 Investec Emerging with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investec Emerging and Angel Oak.
Diversification Opportunities for Investec Emerging and Angel Oak
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Investec and Angel is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Investec Emerging Markets 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 Investec Emerging 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 Investec Emerging Markets 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 Investec Emerging i.e., Investec Emerging and Angel Oak go up and down completely randomly.
Pair Corralation between Investec Emerging and Angel Oak
Assuming the 90 days horizon Investec Emerging Markets is expected to under-perform the Angel Oak. In addition to that, Investec Emerging is 5.24 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 0.05 per unit of volatility. If you would invest 847.00 in Angel Oak Multi Strategy on October 25, 2024 and sell it today you would earn a total of 4.00 from holding Angel Oak Multi Strategy or generate 0.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.33% |
| Values | Daily Returns |
Investec Emerging Markets vs. Angel Oak Multi Strategy
Performance |
| Timeline |
| Investec Emerging Markets |
| Angel Oak Multi |
Investec Emerging and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investec Emerging and Angel Oak
The main advantage of trading using opposite Investec Emerging and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investec Emerging 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.| Investec Emerging vs. Ab All Market | Investec Emerging vs. Barings Emerging Markets | Investec Emerging vs. Alphacentric Hedged Market | Investec Emerging vs. Dws Emerging Markets |
| Angel Oak vs. Dreyfus Bond Market | Angel Oak vs. Barings Emerging Markets | Angel Oak vs. Fidelity New Markets | Angel Oak vs. Calvert Developed Market |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |