Correlation Between Voya Solution and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Voya Solution 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 Voya Solution and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Solution Aggressive and Angel Oak Multi Strategy, you can compare the effects of market volatilities on Voya Solution 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 Voya Solution with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Solution and Angel Oak.
Diversification Opportunities for Voya Solution and Angel Oak
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Voya and Angel is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Voya Solution Aggressive and Angel Oak Multi Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Multi and Voya Solution 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 Voya Solution Aggressive 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 Multi has no effect on the direction of Voya Solution i.e., Voya Solution and Angel Oak go up and down completely randomly.
Pair Corralation between Voya Solution and Angel Oak
Assuming the 90 days horizon Voya Solution Aggressive is expected to generate 3.51 times more return on investment than Angel Oak. However, Voya Solution is 3.51 times more volatile than Angel Oak Multi Strategy. It trades about 0.13 of its potential returns per unit of risk. Angel Oak Multi Strategy is currently generating about 0.16 per unit of risk. If you would invest 1,182 in Voya Solution Aggressive on September 4, 2024 and sell it today you would earn a total of 301.00 from holding Voya Solution Aggressive or generate 25.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Solution Aggressive vs. Angel Oak Multi Strategy
Performance |
| Timeline |
| Voya Solution Aggressive |
| Angel Oak Multi |
Voya Solution and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Solution and Angel Oak
The main advantage of trading using opposite Voya Solution and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Solution 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.| Voya Solution vs. Angel Oak Multi Strategy | Voya Solution vs. Nasdaq 100 2x Strategy | Voya Solution vs. Black Oak Emerging | Voya Solution vs. Commodities Strategy Fund |
| Angel Oak vs. Rbb Fund | Angel Oak vs. Falcon Focus Scv | Angel Oak vs. Sei Daily Income | Angel Oak vs. Acm Dynamic Opportunity |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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