Correlation Between SPDR DoubleLine and Angel Oak
Can any of the company-specific risk be diversified away by investing in both SPDR DoubleLine 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 SPDR DoubleLine and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR DoubleLine Total and Angel Oak Funds, you can compare the effects of market volatilities on SPDR DoubleLine 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 SPDR DoubleLine with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR DoubleLine and Angel Oak.
Diversification Opportunities for SPDR DoubleLine and Angel Oak
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SPDR and Angel is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding SPDR DoubleLine Total and Angel Oak Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Funds and SPDR DoubleLine 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 SPDR DoubleLine Total 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 Funds has no effect on the direction of SPDR DoubleLine i.e., SPDR DoubleLine and Angel Oak go up and down completely randomly.
Pair Corralation between SPDR DoubleLine and Angel Oak
Given the investment horizon of 90 days SPDR DoubleLine Total is expected to generate 1.33 times more return on investment than Angel Oak. However, SPDR DoubleLine is 1.33 times more volatile than Angel Oak Funds. It trades about 0.1 of its potential returns per unit of risk. Angel Oak Funds is currently generating about 0.1 per unit of risk. If you would invest 3,630 in SPDR DoubleLine Total on September 1, 2024 and sell it today you would earn a total of 410.00 from holding SPDR DoubleLine Total or generate 11.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 73.98% |
| Values | Daily Returns |
SPDR DoubleLine Total vs. Angel Oak Funds
Performance |
| Timeline |
| SPDR DoubleLine Total |
| Angel Oak Funds |
SPDR DoubleLine and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR DoubleLine and Angel Oak
The main advantage of trading using opposite SPDR DoubleLine and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR DoubleLine 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.| SPDR DoubleLine vs. PIMCO Active Bond | SPDR DoubleLine vs. SPDR Blackstone Senior | SPDR DoubleLine vs. SPDR Barclays Intermediate | SPDR DoubleLine vs. SPDR Bloomberg Investment |
| Angel Oak vs. Valued Advisers Trust | Angel Oak vs. Columbia Diversified Fixed | Angel Oak vs. Principal Exchange Traded Funds | Angel Oak vs. Doubleline Etf 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |