Correlation Between Nuveen Core and Angel Oak

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

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

Diversification Opportunities for Nuveen Core and Angel Oak

-0.2

Correlation Coefficient

Nuveen Core  Angel Oak

Good diversification

The 3 months correlation between Nuveen and Angel is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Nuveen Core Plus 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 Nuveen Core 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 Nuveen Core Plus 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 Nuveen Core i.e., Nuveen Core and Angel Oak go up and down completely randomly.

Pair Corralation between Nuveen Core and Angel Oak

Given the investment horizon of 90 days Nuveen Core Plus is expected to generate 1.58 times more return on investment than Angel Oak. However, Nuveen Core is 1.58 times more volatile than Angel Oak Financial. It trades about 0.2 of its potential returns per unit of risk. Angel Oak Financial is currently generating about 0.02 per unit of risk. If you would invest  989.00  in Nuveen Core Plus on May 6, 2025 and sell it today you would earn a total of  105.00  from holding Nuveen Core Plus or generate 10.62% return on investment over 90 days.

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

Nuveen Core Plus  vs.  Angel Oak Financial

Nuveen Core Plus

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Nuveen Core Plus are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental indicators, Nuveen Core may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Angel Oak Financial

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Angel Oak Financial are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Angel Oak is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Nuveen Core and Angel Oak

The main advantage of trading using opposite Nuveen Core and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuveen Core 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 Nuveen Core Plus 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.