Correlation Between Angel Oak and IShares Treasury
Can any of the company-specific risk be diversified away by investing in both Angel Oak and IShares Treasury 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 IShares Treasury into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Angel Oak Ultrashort and iShares Treasury Floating, you can compare the effects of market volatilities on Angel Oak and IShares Treasury 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 IShares Treasury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and IShares Treasury.
Diversification Opportunities for Angel Oak and IShares Treasury
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Angel and IShares is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Ultrashort and iShares Treasury Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Treasury Floating 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 Ultrashort are associated (or correlated) with IShares Treasury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Treasury Floating has no effect on the direction of Angel Oak i.e., Angel Oak and IShares Treasury go up and down completely randomly.
Pair Corralation between Angel Oak and IShares Treasury
Given the investment horizon of 90 days Angel Oak Ultrashort is expected to generate 2.49 times more return on investment than IShares Treasury. However, Angel Oak is 2.49 times more volatile than iShares Treasury Floating. It trades about 0.51 of its potential returns per unit of risk. iShares Treasury Floating is currently generating about 0.98 per unit of risk. If you would invest 4,762 in Angel Oak Ultrashort on September 14, 2024 and sell it today you would earn a total of 355.00 from holding Angel Oak Ultrashort or generate 7.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Ultrashort vs. iShares Treasury Floating
Performance |
| Timeline |
| Angel Oak Ultrashort |
| iShares Treasury Floating |
Angel Oak and IShares Treasury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and IShares Treasury
The main advantage of trading using opposite Angel Oak and IShares Treasury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, IShares Treasury 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 IShares Treasury will offset losses from the drop in IShares Treasury's long position.| Angel Oak vs. iShares Treasury Floating | Angel Oak vs. SPDR Bloomberg Investment | Angel Oak vs. SPDR Barclays Short | Angel Oak vs. SPDR Bloomberg 1 3 |
| IShares Treasury vs. WisdomTree Floating Rate | IShares Treasury vs. iShares 0 3 Month | IShares Treasury vs. iShares Ultra Short Term | IShares Treasury vs. iShares Floating Rate |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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