Correlation Between Angel Oak and ATT
Can any of the company-specific risk be diversified away by investing in both Angel Oak and ATT 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 ATT 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 ATT Inc, you can compare the effects of market volatilities on Angel Oak and ATT 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 ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and ATT.
Diversification Opportunities for Angel Oak and ATT
Weak diversification
The 3 months correlation between Angel and ATT is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Flexible and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT 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 ATT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATT Inc has no effect on the direction of Angel Oak i.e., Angel Oak and ATT go up and down completely randomly.
Pair Corralation between Angel Oak and ATT
Assuming the 90 days horizon Angel Oak Flexible is expected to generate 0.2 times more return on investment than ATT. However, Angel Oak Flexible is 4.99 times less risky than ATT. It trades about 0.19 of its potential returns per unit of risk. ATT Inc is currently generating about -0.27 per unit of risk. If you would invest 771.00 in Angel Oak Flexible on January 16, 2024 and sell it today you would earn a total of 5.00 from holding Angel Oak Flexible or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Flexible vs. ATT Inc
Performance |
| Timeline |
| Angel Oak Flexible |
| ATT Inc |
Angel Oak and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and ATT
The main advantage of trading using opposite Angel Oak and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, ATT 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 ATT will offset losses from the drop in ATT's long position.| Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Doubleline Income Solutions |
| ATT vs. Aquagold International | ATT vs. Thrivent High Yield | ATT vs. Morningstar Unconstrained Allocation | ATT vs. Via Renewables |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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