Correlation Between IA Financial and Angel Oak

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

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

Diversification Opportunities for IA Financial and Angel Oak

0.59

Correlation Coefficient

IA Financial  Angel Oak

Very weak diversification

The 3 months correlation between IAFNF and Angel is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding iA Financial 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 IA Financial 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 iA Financial 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 IA Financial i.e., IA Financial and Angel Oak go up and down completely randomly.

Pair Corralation between IA Financial and Angel Oak

Assuming the 90 days horizon iA Financial is expected to generate 2.4 times more return on investment than Angel Oak. However, IA Financial is 2.4 times more volatile than Angel Oak Financial. It trades about 0.15 of its potential returns per unit of risk. Angel Oak Financial is currently generating about 0.11 per unit of risk. If you would invest  10,340  in iA Financial on September 16, 2025 and sell it today you would earn a total of  2,505  from holding iA Financial or generate 24.23% return on investment over 90 days.

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

iA Financial  vs.  Angel Oak Financial

iA Financial

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in iA Financial are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, IA Financial reported solid returns over the last few months and may actually be approaching a breakup point.

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 investors with long positions. In spite of comparatively stable basic indicators, Angel Oak is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with IA Financial and Angel Oak

The main advantage of trading using opposite IA Financial and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IA Financial 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 iA Financial 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.