Correlation Between AGFiQ Market and Cambria Emerging
Can any of the company-specific risk be diversified away by investing in both AGFiQ Market and Cambria Emerging 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 AGFiQ Market and Cambria Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGFiQ Market Neutral and Cambria Emerging Shareholder, you can compare the effects of market volatilities on AGFiQ Market and Cambria Emerging 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 AGFiQ Market with a short position of Cambria Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGFiQ Market and Cambria Emerging.
Diversification Opportunities for AGFiQ Market and Cambria Emerging
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between AGFiQ and Cambria is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding AGFiQ Market Neutral and Cambria Emerging Shareholder in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambria Emerging Sha and AGFiQ Market 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 AGFiQ Market Neutral are associated (or correlated) with Cambria Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambria Emerging Sha has no effect on the direction of AGFiQ Market i.e., AGFiQ Market and Cambria Emerging go up and down completely randomly.
Pair Corralation between AGFiQ Market and Cambria Emerging
Given the investment horizon of 90 days AGFiQ Market Neutral is expected to generate 0.76 times more return on investment than Cambria Emerging. However, AGFiQ Market Neutral is 1.32 times less risky than Cambria Emerging. It trades about -0.12 of its potential returns per unit of risk. Cambria Emerging Shareholder is currently generating about -0.11 per unit of risk. If you would invest 1,940 in AGFiQ Market Neutral on August 27, 2024 and sell it today you would lose (39.00) from holding AGFiQ Market Neutral or give up 2.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGFiQ Market Neutral vs. Cambria Emerging Shareholder
Performance |
| Timeline |
| AGFiQ Market Neutral |
| Cambria Emerging Sha |
AGFiQ Market and Cambria Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGFiQ Market and Cambria Emerging
The main advantage of trading using opposite AGFiQ Market and Cambria Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGFiQ Market position performs unexpectedly, Cambria Emerging 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 Cambria Emerging will offset losses from the drop in Cambria Emerging's long position.| AGFiQ Market vs. Cambria Tail Risk | AGFiQ Market vs. IQ Merger Arbitrage | AGFiQ Market vs. Amplify BlackSwan Growth | AGFiQ Market vs. AdvisorShares Dorsey Wright |
| Cambria Emerging vs. Cambria Foreign Shareholder | Cambria Emerging vs. Cambria Global Value | Cambria Emerging vs. Cambria Global Momentum | Cambria Emerging vs. Cambria Value and |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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