Correlation Between Angel Oak and SPDR Bloomberg
Can any of the company-specific risk be diversified away by investing in both Angel Oak and SPDR Bloomberg 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 Angel Oak and SPDR Bloomberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Angel Oak Funds and SPDR Bloomberg Barclays, you can compare the effects of market volatilities on Angel Oak and SPDR Bloomberg 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 Angel Oak with a short position of SPDR Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and SPDR Bloomberg.
Diversification Opportunities for Angel Oak and SPDR Bloomberg
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Angel and SPDR is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Funds and SPDR Bloomberg Barclays in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Bloomberg Barclays and Angel Oak 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 Angel Oak Funds are associated (or correlated) with SPDR Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Bloomberg Barclays has no effect on the direction of Angel Oak i.e., Angel Oak and SPDR Bloomberg go up and down completely randomly.
Pair Corralation between Angel Oak and SPDR Bloomberg
Considering the 90-day investment horizon Angel Oak Funds is expected to under-perform the SPDR Bloomberg. But the etf apears to be less risky and, when comparing its historical volatility, Angel Oak Funds is 1.46 times less risky than SPDR Bloomberg. The etf trades about -0.23 of its potential returns per unit of risk. The SPDR Bloomberg Barclays is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 2,486 in SPDR Bloomberg Barclays on August 29, 2024 and sell it today you would lose (42.00) from holding SPDR Bloomberg Barclays or give up 1.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Funds vs. SPDR Bloomberg Barclays
Performance |
| Timeline |
| Angel Oak Funds |
| SPDR Bloomberg Barclays |
Angel Oak and SPDR Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and SPDR Bloomberg
The main advantage of trading using opposite Angel Oak and SPDR Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, SPDR Bloomberg 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 SPDR Bloomberg will offset losses from the drop in SPDR Bloomberg's long position.| Angel Oak vs. SPDR Bloomberg Barclays | Angel Oak vs. FlexShares STOXX Global | Angel Oak vs. BNY Mellon ETF | Angel Oak vs. American Century Sustainable |
| SPDR Bloomberg vs. SPDR DoubleLine Emerging | SPDR Bloomberg vs. SPDR SSGA Fixed | SPDR Bloomberg vs. SPDR Series Trust | SPDR Bloomberg vs. SSGA Active 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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