Correlation Between Angel Oak and Rbb Fund

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

Diversification Opportunities for Angel Oak and Rbb Fund

0.85

Correlation Coefficient

Angel Oak  Rbb Fund

Very poor diversification

The 3 months correlation between Angel and Rbb is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Ultrashort and Rbb Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rbb Fund 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 Rbb Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rbb Fund has no effect on the direction of Angel Oak i.e., Angel Oak and Rbb Fund go up and down completely randomly.

Pair Corralation between Angel Oak and Rbb Fund

Given the investment horizon of 90 days Angel Oak is expected to generate 1.85 times less return on investment than Rbb Fund. But when comparing it to its historical volatility, Angel Oak Ultrashort is 20.21 times less risky than Rbb Fund. It trades about 0.51 of its potential returns per unit of risk. Rbb Fund is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  3,486  in Rbb Fund on September 15, 2024 and sell it today you would earn a total of  188.00  from holding Rbb Fund or generate 5.39% return on investment over 90 days.

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

Angel Oak Ultrashort  vs.  Rbb Fund

Angel Oak Ultrashort

Risk-Adjusted Performance

32 of 100

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Angel Oak Ultrashort are ranked lower than 32 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound essential indicators, Angel Oak is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Rbb Fund

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Rbb Fund are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound essential indicators, Rbb Fund is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Angel Oak and Rbb Fund

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

The idea behind Angel Oak Ultrashort and Rbb Fund 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.