Correlation Between Voya Index and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Voya Index 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 Index 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 Index Solution and Angel Oak Financial, you can compare the effects of market volatilities on Voya Index 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 Index with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Index and Angel Oak.
Diversification Opportunities for Voya Index and Angel Oak
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Voya and Angel is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Voya Index Solution and Angel Oak Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Financial and Voya Index 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 Index Solution 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 Financial has no effect on the direction of Voya Index i.e., Voya Index and Angel Oak go up and down completely randomly.
Pair Corralation between Voya Index and Angel Oak
Assuming the 90 days horizon Voya Index Solution is expected to generate 1.42 times more return on investment than Angel Oak. However, Voya Index is 1.42 times more volatile than Angel Oak Financial. It trades about 0.27 of its potential returns per unit of risk. Angel Oak Financial is currently generating about 0.14 per unit of risk. If you would invest 964.00 in Voya Index Solution on September 4, 2024 and sell it today you would earn a total of 18.00 from holding Voya Index Solution or generate 1.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Voya Index Solution vs. Angel Oak Financial
Performance |
| Timeline |
| Voya Index Solution |
| Angel Oak Financial |
Voya Index and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Index and Angel Oak
The main advantage of trading using opposite Voya Index and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Index 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 Index vs. Voya Bond Index | Voya Index vs. Voya Bond Index | Voya Index vs. Voya Limited Maturity | Voya Index vs. Voya Limited Maturity |
| Angel Oak vs. Vanguard Total Stock | Angel Oak vs. Vanguard 500 Index | Angel Oak vs. Vanguard Total Stock | Angel Oak vs. Vanguard Total Stock |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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