Correlation Between Angel Oak and Apple
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Apple 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 Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Angel Oak Flexible and Apple Inc, you can compare the effects of market volatilities on Angel Oak and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Apple.
Diversification Opportunities for Angel Oak and Apple
Excellent diversification
The 3 months correlation between Angel and Apple is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Flexible and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Flexible are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Angel Oak i.e., Angel Oak and Apple go up and down completely randomly.
Pair Corralation between Angel Oak and Apple
Assuming the 90 days horizon Angel Oak Flexible is expected to generate 0.14 times more return on investment than Apple. However, Angel Oak Flexible is 6.95 times less risky than Apple. It trades about 0.25 of its potential returns per unit of risk. Apple Inc is currently generating about -0.15 per unit of risk. If you would invest 755.00 in Angel Oak Flexible on January 26, 2024 and sell it today you would earn a total of 22.00 from holding Angel Oak Flexible or generate 2.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Angel Oak Flexible vs. Apple Inc
Performance |
Timeline |
Angel Oak Flexible |
Apple Inc |
Angel Oak and Apple Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Angel Oak and Apple
The main advantage of trading using opposite Angel Oak and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.Angel Oak vs. Gmo Emerging Markets | Angel Oak vs. Pace International Emerging | Angel Oak vs. Investec Emerging Markets | Angel Oak vs. Dws Emerging Markets |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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