Correlation Between IShares Inflation and Angel Oak
Can any of the company-specific risk be diversified away by investing in both IShares Inflation 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 Inflation 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 Inflation Hedged and Angel Oak Ultrashort, you can compare the effects of market volatilities on IShares Inflation 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 Inflation with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Inflation and Angel Oak.
Diversification Opportunities for IShares Inflation and Angel Oak
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and Angel is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding iShares Inflation Hedged 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 IShares Inflation 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 Inflation Hedged 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 IShares Inflation i.e., IShares Inflation and Angel Oak go up and down completely randomly.
Pair Corralation between IShares Inflation and Angel Oak
Given the investment horizon of 90 days iShares Inflation Hedged is expected to generate 9.75 times more return on investment than Angel Oak. However, IShares Inflation is 9.75 times more volatile than Angel Oak Ultrashort. It trades about 0.19 of its potential returns per unit of risk. Angel Oak Ultrashort is currently generating about 0.48 per unit of risk. If you would invest 2,601 in iShares Inflation Hedged on September 3, 2024 and sell it today you would earn a total of 43.00 from holding iShares Inflation Hedged or generate 1.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Inflation Hedged vs. Angel Oak Ultrashort
Performance |
| Timeline |
| iShares Inflation Hedged |
| Angel Oak Ultrashort |
IShares Inflation and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Inflation and Angel Oak
The main advantage of trading using opposite IShares Inflation and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Inflation 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 Inflation vs. iShares Interest Rate | IShares Inflation vs. iShares Interest Rate | IShares Inflation vs. iShares Edge Investment | IShares Inflation vs. iShares Interest Rate |
| Angel Oak vs. SCOR PK | Angel Oak vs. HUMANA INC | Angel Oak vs. Aquagold International | Angel Oak vs. Barloworld Ltd ADR |
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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