Correlation Between Angel Oak and Duolingo
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Duolingo 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 Duolingo 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 Duolingo, you can compare the effects of market volatilities on Angel Oak and Duolingo 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 Duolingo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Duolingo.
Diversification Opportunities for Angel Oak and Duolingo
Excellent diversification
The 3 months correlation between Angel and Duolingo is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Duolingo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duolingo 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 Duolingo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duolingo has no effect on the direction of Angel Oak i.e., Angel Oak and Duolingo go up and down completely randomly.
Pair Corralation between Angel Oak and Duolingo
Given the investment horizon of 90 days Angel Oak Financial is expected to generate 0.11 times more return on investment than Duolingo. However, Angel Oak Financial is 9.15 times less risky than Duolingo. It trades about 0.07 of its potential returns per unit of risk. Duolingo is currently generating about -0.12 per unit of risk. If you would invest 1,291 in Angel Oak Financial on September 2, 2025 and sell it today you would earn a total of 27.00 from holding Angel Oak Financial or generate 2.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Financial vs. Duolingo
Performance |
| Timeline |
| Angel Oak Financial |
| Duolingo |
Angel Oak and Duolingo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Duolingo
The main advantage of trading using opposite Angel Oak and Duolingo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Duolingo 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 Duolingo will offset losses from the drop in Duolingo's long position.| Angel Oak vs. Lamar Advertising | Angel Oak vs. Pacific Online Limited | Angel Oak vs. New Ulm Telecom | Angel Oak vs. Space Communication |
| Duolingo vs. Grupo Carso SAB | Duolingo vs. Renovare Environmental | Duolingo vs. DIRTT Environmental Solutions | Duolingo vs. Tree Island Steel |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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