Correlation Between Voya Large and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Voya Large 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 Large 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 Large Cap and Angel Oak Ultrashort, you can compare the effects of market volatilities on Voya Large 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 Large with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Large and Angel Oak.
Diversification Opportunities for Voya Large and Angel Oak
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Voya and Angel is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Voya Large Cap and Angel Oak Ultrashort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Ultrashort and Voya Large 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 Large Cap 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 Ultrashort has no effect on the direction of Voya Large i.e., Voya Large and Angel Oak go up and down completely randomly.
Pair Corralation between Voya Large and Angel Oak
Assuming the 90 days horizon Voya Large Cap is expected to generate 8.59 times more return on investment than Angel Oak. However, Voya Large is 8.59 times more volatile than Angel Oak Ultrashort. It trades about 0.08 of its potential returns per unit of risk. Angel Oak Ultrashort is currently generating about 0.1 per unit of risk. If you would invest 615.00 in Voya Large Cap on September 13, 2024 and sell it today you would earn a total of 14.00 from holding Voya Large Cap or generate 2.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.67% |
| Values | Daily Returns |
Voya Large Cap vs. Angel Oak Ultrashort
Performance |
| Timeline |
| Voya Large Cap |
| Angel Oak Ultrashort |
Voya Large and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Large and Angel Oak
The main advantage of trading using opposite Voya Large and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Large 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 Large vs. Voya Bond Index | Voya Large vs. Voya Bond Index | Voya Large vs. Voya Limited Maturity | Voya Large vs. Voya Limited Maturity |
| Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Angel Oak Multi Strategy | Angel Oak vs. Doubleline Income Solutions |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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