Correlation Between Seven Hills and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Seven Hills and Angel Oak 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 Seven Hills and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seven Hills Realty and Angel Oak Mortgage, you can compare the effects of market volatilities on Seven Hills and Angel Oak 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 Seven Hills with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seven Hills and Angel Oak.
Diversification Opportunities for Seven Hills and Angel Oak
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Seven and Angel is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Seven Hills Realty and Angel Oak Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Mortgage and Seven Hills 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 Seven Hills Realty are associated (or correlated) with Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Mortgage has no effect on the direction of Seven Hills i.e., Seven Hills and Angel Oak go up and down completely randomly.
Pair Corralation between Seven Hills and Angel Oak
Given the investment horizon of 90 days Seven Hills Realty is expected to under-perform the Angel Oak. In addition to that, Seven Hills is 1.26 times more volatile than Angel Oak Mortgage. It trades about -0.08 of its total potential returns per unit of risk. Angel Oak Mortgage is currently generating about -0.05 per unit of volatility. If you would invest 906.00 in Angel Oak Mortgage on October 6, 2025 and sell it today you would lose (47.00) from holding Angel Oak Mortgage or give up 5.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seven Hills Realty vs. Angel Oak Mortgage
Performance |
| Timeline |
| Seven Hills Realty |
| Angel Oak Mortgage |
Seven Hills and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seven Hills and Angel Oak
The main advantage of trading using opposite Seven Hills and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seven Hills position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak's long position.| Seven Hills vs. Acres Commercial Realty | Seven Hills vs. Granite Point Mortgage | Seven Hills vs. Comstock Holding Companies | Seven Hills vs. Orion Office Reit |
| Angel Oak vs. Granite Point Mortgage | Angel Oak vs. MFA Financial | Angel Oak vs. Two Harbors Investments | Angel Oak vs. PennyMac Mortgage Investment |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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