Correlation Between Angel Oak and Calamos Dividend

Can any of the company-specific risk be diversified away by investing in both Angel Oak and Calamos Dividend 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 Calamos Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Angel Oak Ultrashort and Calamos Dividend Growth, you can compare the effects of market volatilities on Angel Oak and Calamos Dividend 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 Calamos Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Calamos Dividend.

Diversification Opportunities for Angel Oak and Calamos Dividend

0.0

Correlation Coefficient

Angel Oak  Calamos Dividend

Pay attention - limited upside

The 3 months correlation between Angel and Calamos is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Ultrashort and Calamos Dividend Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Dividend Growth 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 Ultrashort are associated (or correlated) with Calamos Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Dividend Growth has no effect on the direction of Angel Oak i.e., Angel Oak and Calamos Dividend go up and down completely randomly.

Pair Corralation between Angel Oak and Calamos Dividend

If you would invest  958.00  in Angel Oak Ultrashort on September 12, 2024 and sell it today you would earn a total of  26.00  from holding Angel Oak Ultrashort or generate 2.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Angel Oak Ultrashort  vs.  Calamos Dividend Growth

Angel Oak Ultrashort

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Angel Oak Ultrashort are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Angel Oak is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Calamos Dividend Growth

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Calamos Dividend Growth has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Calamos Dividend is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Angel Oak and Calamos Dividend

The main advantage of trading using opposite Angel Oak and Calamos Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Calamos Dividend 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 Calamos Dividend will offset losses from the drop in Calamos Dividend's long position.

The idea behind Angel Oak Ultrashort and Calamos Dividend Growth 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.

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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.