Correlation Between Angel Oak and Oppenheimer Value

Can any of the company-specific risk be diversified away by investing in both Angel Oak and Oppenheimer Value 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 Oppenheimer Value 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 Oppenheimer Value Fd, you can compare the effects of market volatilities on Angel Oak and Oppenheimer Value 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 Oppenheimer Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Oppenheimer Value.

Diversification Opportunities for Angel Oak and Oppenheimer Value

0.13

Correlation Coefficient

Angel Oak  Oppenheimer Value

Average diversification

The 3 months correlation between Angel and Oppenheimer is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Ultrashort and Oppenheimer Value Fd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Value 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 Oppenheimer Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Value has no effect on the direction of Angel Oak i.e., Angel Oak and Oppenheimer Value go up and down completely randomly.

Pair Corralation between Angel Oak and Oppenheimer Value

Assuming the 90 days horizon Angel Oak is expected to generate 1.14 times less return on investment than Oppenheimer Value. But when comparing it to its historical volatility, Angel Oak Ultrashort is 9.37 times less risky than Oppenheimer Value. It trades about 0.2 of its potential returns per unit of risk. Oppenheimer Value Fd is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  3,241  in Oppenheimer Value Fd on December 31, 2024 and sell it today you would earn a total of  32.00  from holding Oppenheimer Value Fd or generate 0.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Angel Oak Ultrashort  vs.  Oppenheimer Value Fd

Angel Oak Ultrashort

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Angel Oak Ultrashort are ranked lower than 15 (%) 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.

Oppenheimer Value

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Oppenheimer Value Fd are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Oppenheimer Value 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 Oppenheimer Value

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

The idea behind Angel Oak Ultrashort and Oppenheimer Value Fd 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.