Correlation Between Voya Balanced and Angel Oak

Can any of the company-specific risk be diversified away by investing in both Voya Balanced 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 Voya Balanced and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Voya Balanced Portfolio and Angel Oak Multi Strategy, you can compare the effects of market volatilities on Voya Balanced 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 Voya Balanced with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Balanced and Angel Oak.

Diversification Opportunities for Voya Balanced and Angel Oak

0.0

Correlation Coefficient

Voya Balanced  Angel Oak

Pay attention - limited upside

The 3 months correlation between Voya and Angel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Voya Balanced Portfolio and Angel Oak Multi Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Multi and Voya Balanced 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 Voya Balanced Portfolio 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 Multi has no effect on the direction of Voya Balanced i.e., Voya Balanced and Angel Oak go up and down completely randomly.

Pair Corralation between Voya Balanced and Angel Oak

If you would invest  0.00  in Voya Balanced Portfolio on October 4, 2024 and sell it today you would earn a total of  0.00  from holding Voya Balanced Portfolio or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Voya Balanced Portfolio  vs.  Angel Oak Multi Strategy

Voya Balanced Portfolio

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Voya Balanced Portfolio has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Voya Balanced is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Angel Oak Multi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Angel Oak Multi Strategy has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong essential indicators, Angel Oak is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Voya Balanced and Angel Oak

The main advantage of trading using opposite Voya Balanced and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Balanced 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.

The idea behind Voya Balanced Portfolio and Angel Oak Multi Strategy pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.