A rotary variable differential transformer for measuring angular displacement and method of manufacturing the same are provided herein. The rotary variable differential transformer includes a stator configured to house a primary coil configured to receive an alternating current, a first secondary coil electromagnetically coupled to the primary coil, and a second secondary coil electromagnetically coupled to the primary coil. The rotary variable differential transformer also includes a rotor positioned concentrically within the stator. The rotor is configured to receive a shaft and rotate with the shaft while the stator remains stationary. The primary coil is positioned at a first radial position within the stator spaced between about 90 to 150 degrees from each of the first secondary coil and the second secondary coil.