Correlation Between SMA Solar and Angel Oak
Can any of the company-specific risk be diversified away by investing in both SMA Solar 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 SMA Solar and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SMA Solar Technology and Angel Oak Flexible, you can compare the effects of market volatilities on SMA Solar 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 SMA Solar with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of SMA Solar and Angel Oak.
Diversification Opportunities for SMA Solar and Angel Oak
Very weak diversification
The 3 months correlation between SMA and Angel is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding SMA Solar Technology 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 SMA Solar 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 SMA Solar Technology 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 SMA Solar i.e., SMA Solar and Angel Oak go up and down completely randomly.
Pair Corralation between SMA Solar and Angel Oak
Assuming the 90 days horizon SMA Solar Technology is expected to under-perform the Angel Oak. In addition to that, SMA Solar is 14.66 times more volatile than Angel Oak Flexible. It trades about -0.24 of its total potential returns per unit of risk. Angel Oak Flexible is currently generating about 0.1 per unit of volatility. If you would invest 770.00 in Angel Oak Flexible on January 20, 2024 and sell it today you would earn a total of 3.00 from holding Angel Oak Flexible or generate 0.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SMA Solar Technology vs. Angel Oak Flexible
Performance |
| Timeline |
| SMA Solar Technology |
| Angel Oak Flexible |
SMA Solar and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SMA Solar and Angel Oak
The main advantage of trading using opposite SMA Solar and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SMA Solar 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.| SMA Solar vs. Xinyi Solar Holdings | SMA Solar vs. Xinyi Solar Holdings | SMA Solar vs. Sunrun Inc | SMA Solar vs. SMA Solar Technology |
| Angel Oak vs. Vanguard Short Term Investment Grade | Angel Oak vs. HUMANA INC | Angel Oak vs. Aquagold International | Angel Oak vs. Thrivent High Yield |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |