Correlation Between Cambiar International and Amg Southernsun
Can any of the company-specific risk be diversified away by investing in both Cambiar International and Amg Southernsun 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 Cambiar International and Amg Southernsun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cambiar International Equity and Amg Southernsun Small, you can compare the effects of market volatilities on Cambiar International and Amg Southernsun 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 Cambiar International with a short position of Amg Southernsun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambiar International and Amg Southernsun.
Diversification Opportunities for Cambiar International and Amg Southernsun
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cambiar and Amg is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Cambiar International Equity and Amg Southernsun Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Southernsun Small and Cambiar International 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 Cambiar International Equity are associated (or correlated) with Amg Southernsun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Southernsun Small has no effect on the direction of Cambiar International i.e., Cambiar International and Amg Southernsun go up and down completely randomly.
Pair Corralation between Cambiar International and Amg Southernsun
Assuming the 90 days horizon Cambiar International Equity is expected to generate 0.53 times more return on investment than Amg Southernsun. However, Cambiar International Equity is 1.88 times less risky than Amg Southernsun. It trades about 0.05 of its potential returns per unit of risk. Amg Southernsun Small is currently generating about 0.02 per unit of risk. If you would invest 2,373 in Cambiar International Equity on September 2, 2024 and sell it today you would earn a total of 306.00 from holding Cambiar International Equity or generate 12.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cambiar International Equity vs. Amg Southernsun Small
Performance |
| Timeline |
| Cambiar International |
| Amg Southernsun Small |
Cambiar International and Amg Southernsun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambiar International and Amg Southernsun
The main advantage of trading using opposite Cambiar International and Amg Southernsun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambiar International position performs unexpectedly, Amg Southernsun 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 Amg Southernsun will offset losses from the drop in Amg Southernsun's long position.| Cambiar International vs. Causeway Emerging Markets | Cambiar International vs. Cambiar Small Cap | Cambiar International vs. Pimco Short Term Fund | Cambiar International vs. Cambiar Opportunity Fund |
| Amg Southernsun vs. Hodges Small Cap | Amg Southernsun vs. Walthausen Small Cap | Amg Southernsun vs. Matthew 25 Fund | Amg Southernsun vs. Amg Yacktman Focused |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |