Correlation Between Angel Oak and Huber Capital
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Huber Capital 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 Huber Capital 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 Huber Capital Diversified, you can compare the effects of market volatilities on Angel Oak and Huber Capital 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 Huber Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Huber Capital.
Diversification Opportunities for Angel Oak and Huber Capital
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Angel and Huber is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Huber Capital Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huber Capital Diversified 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 Huber Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huber Capital Diversified has no effect on the direction of Angel Oak i.e., Angel Oak and Huber Capital go up and down completely randomly.
Pair Corralation between Angel Oak and Huber Capital
Assuming the 90 days horizon Angel Oak Financial is expected to generate 0.24 times more return on investment than Huber Capital. However, Angel Oak Financial is 4.17 times less risky than Huber Capital. It trades about 0.09 of its potential returns per unit of risk. Huber Capital Diversified is currently generating about -0.02 per unit of risk. If you would invest 1,402 in Angel Oak Financial on December 28, 2024 and sell it today you would earn a total of 17.00 from holding Angel Oak Financial or generate 1.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Angel Oak Financial vs. Huber Capital Diversified
Performance |
Timeline |
Angel Oak Financial |
Huber Capital Diversified |
Angel Oak and Huber Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Angel Oak and Huber Capital
The main advantage of trading using opposite Angel Oak and Huber Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Huber Capital 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 Huber Capital will offset losses from the drop in Huber Capital's long position.Angel Oak vs. Ab Bond Inflation | Angel Oak vs. Versatile Bond Portfolio | Angel Oak vs. Gmo High Yield | Angel Oak vs. Rbc Ultra Short Fixed |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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