Correlation Between Angel Oak and Deutsche Managed
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Deutsche Managed 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 Deutsche Managed 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 Deutsche Managed Municipal, you can compare the effects of market volatilities on Angel Oak and Deutsche Managed 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 Deutsche Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Deutsche Managed.
Diversification Opportunities for Angel Oak and Deutsche Managed
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Angel and Deutsche is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Ultrashort and Deutsche Managed Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Managed Mun 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 Deutsche Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Managed Mun has no effect on the direction of Angel Oak i.e., Angel Oak and Deutsche Managed go up and down completely randomly.
Pair Corralation between Angel Oak and Deutsche Managed
Assuming the 90 days horizon Angel Oak Ultrashort is expected to generate 0.41 times more return on investment than Deutsche Managed. However, Angel Oak Ultrashort is 2.43 times less risky than Deutsche Managed. It trades about 0.23 of its potential returns per unit of risk. Deutsche Managed Municipal is currently generating about 0.06 per unit of risk. If you would invest 941.00 in Angel Oak Ultrashort on October 12, 2024 and sell it today you would earn a total of 41.00 from holding Angel Oak Ultrashort or generate 4.36% 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 Ultrashort vs. Deutsche Managed Municipal
Performance |
Timeline |
Angel Oak Ultrashort |
Deutsche Managed Mun |
Angel Oak and Deutsche Managed Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Angel Oak and Deutsche Managed
The main advantage of trading using opposite Angel Oak and Deutsche Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Deutsche Managed 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 Deutsche Managed will offset losses from the drop in Deutsche Managed's long position.Angel Oak vs. Buffalo High Yield | Angel Oak vs. Guggenheim High Yield | Angel Oak vs. Fidelity Capital Income | Angel Oak vs. Simt High Yield |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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