Correlation Between Unconstrained Emerging and Angel Oak

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

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

Diversification Opportunities for Unconstrained Emerging and Angel Oak

-0.48

Correlation Coefficient

Unconstrained Emerging  Angel Oak

Very good diversification

The 3 months correlation between Unconstrained and Angel is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Unconstrained Emerging Markets and Angel Oak Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Financial and Unconstrained Emerging 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 Unconstrained Emerging Markets 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 Financial has no effect on the direction of Unconstrained Emerging i.e., Unconstrained Emerging and Angel Oak go up and down completely randomly.

Pair Corralation between Unconstrained Emerging and Angel Oak

Assuming the 90 days horizon Unconstrained Emerging Markets is expected to generate 0.51 times more return on investment than Angel Oak. However, Unconstrained Emerging Markets is 1.97 times less risky than Angel Oak. It trades about 0.39 of its potential returns per unit of risk. Angel Oak Financial is currently generating about -0.16 per unit of risk. If you would invest  528.00  in Unconstrained Emerging Markets on May 19, 2025 and sell it today you would earn a total of  35.00  from holding Unconstrained Emerging Markets or generate 6.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Unconstrained Emerging Markets  vs.  Angel Oak Financial

Unconstrained Emerging

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Unconstrained Emerging Markets are ranked lower than 30 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Unconstrained Emerging may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Angel Oak Financial

Risk-Adjusted Performance

Weakest

Over the last 90 days Angel Oak Financial has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic 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 Unconstrained Emerging and Angel Oak

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

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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.