Correlation Between Kinaxis and Angel Oak

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Can any of the company-specific risk be diversified away by investing in both Kinaxis 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 Kinaxis and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinaxis and Angel Oak Flexible, you can compare the effects of market volatilities on Kinaxis 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 Kinaxis with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinaxis and Angel Oak.

Diversification Opportunities for Kinaxis and Angel Oak

-0.12
  Correlation Coefficient

Good diversification

The 3 months correlation between Kinaxis and Angel is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Kinaxis and ANGEL OAK FLEXIBLE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Flexible and Kinaxis 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 Kinaxis 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 Flexible has no effect on the direction of Kinaxis i.e., Kinaxis and Angel Oak go up and down completely randomly.

Pair Corralation between Kinaxis and Angel Oak

Assuming the 90 days trading horizon Kinaxis is expected to generate 8.66 times more return on investment than Angel Oak. However, Kinaxis is 8.66 times more volatile than Angel Oak Flexible. It trades about 0.02 of its potential returns per unit of risk. Angel Oak Flexible is currently generating about 0.02 per unit of risk. If you would invest  14,313  in Kinaxis on December 29, 2023 and sell it today you would earn a total of  981.00  from holding Kinaxis or generate 6.85% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy99.73%
ValuesDaily Returns

Kinaxis  vs.  ANGEL OAK FLEXIBLE

 Performance 
       Timeline  
Kinaxis 

Risk-Adjusted Performance

2 of 100

 
Low
 
High
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Kinaxis are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Kinaxis is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.
Angel Oak Flexible 

Risk-Adjusted Performance

19 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Angel Oak Flexible are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Angel Oak is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Kinaxis and Angel Oak Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kinaxis and Angel Oak

The main advantage of trading using opposite Kinaxis and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinaxis 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 Kinaxis and Angel Oak Flexible 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.
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.

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