Correlation Between Angel Oak and Tiaa Cref
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Tiaa Cref 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 Tiaa Cref into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Angel Oak Financial and Tiaa Cref Equity Index, you can compare the effects of market volatilities on Angel Oak and Tiaa Cref 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 Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Tiaa Cref.
Diversification Opportunities for Angel Oak and Tiaa Cref
Very poor diversification
The 3 months correlation between Angel and Tiaa is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Tiaa Cref Equity Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Equity 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 Financial are associated (or correlated) with Tiaa Cref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref Equity has no effect on the direction of Angel Oak i.e., Angel Oak and Tiaa Cref go up and down completely randomly.
Pair Corralation between Angel Oak and Tiaa Cref
Assuming the 90 days horizon Angel Oak Financial is expected to under-perform the Tiaa Cref. But the mutual fund apears to be less risky and, when comparing its historical volatility, Angel Oak Financial is 3.53 times less risky than Tiaa Cref. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Tiaa Cref Equity Index is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,725 in Tiaa Cref Equity Index on September 14, 2024 and sell it today you would earn a total of 1,621 from holding Tiaa Cref Equity Index or generate 59.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Financial vs. Tiaa Cref Equity Index
Performance |
| Timeline |
| Angel Oak Financial |
| Tiaa Cref Equity |
Angel Oak and Tiaa Cref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Tiaa Cref
The main advantage of trading using opposite Angel Oak and Tiaa Cref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Tiaa Cref 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 Tiaa Cref will offset losses from the drop in Tiaa Cref's long position.| Angel Oak vs. Gabelli Convertible And | Angel Oak vs. Absolute Convertible Arbitrage | Angel Oak vs. Rationalpier 88 Convertible | Angel Oak vs. Virtus Convertible |
| Tiaa Cref vs. Angel Oak Financial | Tiaa Cref vs. Prudential Jennison Financial | Tiaa Cref vs. Blackrock Financial Institutions | Tiaa Cref vs. Goldman Sachs Financial |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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