Correlation Between Angel Oak and Emeren
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Emeren 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 Emeren 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 Emeren Group, you can compare the effects of market volatilities on Angel Oak and Emeren 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 Emeren. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Emeren.
Diversification Opportunities for Angel Oak and Emeren
Very good diversification
The 3 months correlation between Angel and Emeren is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Emeren Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emeren Group 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 Emeren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emeren Group has no effect on the direction of Angel Oak i.e., Angel Oak and Emeren go up and down completely randomly.
Pair Corralation between Angel Oak and Emeren
Given the investment horizon of 90 days Angel Oak Financial is expected to generate 0.53 times more return on investment than Emeren. However, Angel Oak Financial is 1.88 times less risky than Emeren. It trades about 0.07 of its potential returns per unit of risk. Emeren Group is currently generating about -0.13 per unit of risk. If you would invest 1,293 in Angel Oak Financial on September 5, 2025 and sell it today you would earn a total of 29.00 from holding Angel Oak Financial or generate 2.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Financial vs. Emeren Group
Performance |
| Timeline |
| Angel Oak Financial |
| Emeren Group |
Angel Oak and Emeren Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Emeren
The main advantage of trading using opposite Angel Oak and Emeren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Emeren 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 Emeren will offset losses from the drop in Emeren's long position.| Angel Oak vs. Diamond Hill Investment | Angel Oak vs. Blackstone Group | Angel Oak vs. Franklin Universal Closed | Angel Oak vs. Tri Continental Closed |
| Emeren vs. Canon Electronics | Emeren vs. Ark Restaurants Corp | Emeren vs. Cleantech Power Corp | Emeren vs. Coffeesmiths Collective |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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