Correlation Between IShares Trust and Angel Oak
Can any of the company-specific risk be diversified away by investing in both IShares Trust 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 IShares Trust and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Trust and Angel Oak Funds, you can compare the effects of market volatilities on IShares Trust 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 IShares Trust with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Trust and Angel Oak.
Diversification Opportunities for IShares Trust and Angel Oak
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and Angel is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding iShares Trust and Angel Oak Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Funds and IShares Trust 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 iShares Trust 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 Funds has no effect on the direction of IShares Trust i.e., IShares Trust and Angel Oak go up and down completely randomly.
Pair Corralation between IShares Trust and Angel Oak
Given the investment horizon of 90 days iShares Trust is expected to generate 1.41 times more return on investment than Angel Oak. However, IShares Trust is 1.41 times more volatile than Angel Oak Funds. It trades about 0.12 of its potential returns per unit of risk. Angel Oak Funds is currently generating about 0.12 per unit of risk. If you would invest 4,300 in iShares Trust on September 3, 2024 and sell it today you would earn a total of 43.00 from holding iShares Trust or generate 1.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Trust vs. Angel Oak Funds
Performance |
| Timeline |
| iShares Trust |
| Angel Oak Funds |
IShares Trust and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Trust and Angel Oak
The main advantage of trading using opposite IShares Trust and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Trust 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.| IShares Trust vs. iShares ESG Aggregate | IShares Trust vs. iShares ESG Advanced | IShares Trust vs. iShares ESG Advanced | IShares Trust vs. iShares ESG USD |
| Angel Oak vs. Valued Advisers Trust | Angel Oak vs. Columbia Diversified Fixed | Angel Oak vs. Principal Exchange Traded Funds | Angel Oak vs. Doubleline Etf Trust |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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