Correlation Between Angel Oak and CBH

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

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

Diversification Opportunities for Angel Oak and CBH

0.0

Correlation Coefficient

Angel Oak  CBH

Pay attention - limited upside

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

Pair Corralation between Angel Oak and CBH

If you would invest  1,257  in Angel Oak Financial on December 27, 2024 and sell it today you would earn a total of  91.00  from holding Angel Oak Financial or generate 7.24% return on investment over 90 days.

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

Angel Oak Financial  vs.  CBH

Angel Oak Financial

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Angel Oak Financial are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Angel Oak may actually be approaching a critical reversion point that can send shares even higher in April 2025.

CBH

Risk-Adjusted Performance

Very Weak

Over the last 90 days CBH has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental drivers, CBH is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Angel Oak and CBH

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

The idea behind Angel Oak Financial and CBH 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.