Correlation Between Cambiar Opportunity and Mondrian Emerging
Can any of the company-specific risk be diversified away by investing in both Cambiar Opportunity and Mondrian 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 Cambiar Opportunity and Mondrian Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cambiar Opportunity Fund and Mondrian Emerging Markets, you can compare the effects of market volatilities on Cambiar Opportunity and Mondrian 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 Cambiar Opportunity with a short position of Mondrian Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambiar Opportunity and Mondrian Emerging.
Diversification Opportunities for Cambiar Opportunity and Mondrian Emerging
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cambiar and Mondrian is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Cambiar Opportunity Fund and Mondrian Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mondrian Emerging Markets and Cambiar Opportunity 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 Opportunity Fund are associated (or correlated) with Mondrian Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mondrian Emerging Markets has no effect on the direction of Cambiar Opportunity i.e., Cambiar Opportunity and Mondrian Emerging go up and down completely randomly.
Pair Corralation between Cambiar Opportunity and Mondrian Emerging
Assuming the 90 days horizon Cambiar Opportunity Fund is expected to generate 0.9 times more return on investment than Mondrian Emerging. However, Cambiar Opportunity Fund is 1.11 times less risky than Mondrian Emerging. It trades about 0.06 of its potential returns per unit of risk. Mondrian Emerging Markets is currently generating about 0.04 per unit of risk. If you would invest 2,481 in Cambiar Opportunity Fund on September 4, 2024 and sell it today you would earn a total of 630.00 from holding Cambiar Opportunity Fund or generate 25.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cambiar Opportunity Fund vs. Mondrian Emerging Markets
Performance |
| Timeline |
| Cambiar Opportunity |
| Mondrian Emerging Markets |
Cambiar Opportunity and Mondrian Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambiar Opportunity and Mondrian Emerging
The main advantage of trading using opposite Cambiar Opportunity and Mondrian Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambiar Opportunity position performs unexpectedly, Mondrian 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 Mondrian Emerging will offset losses from the drop in Mondrian Emerging's long position.| Cambiar Opportunity vs. Cambiar International Equity | Cambiar Opportunity vs. Cambiar Small Cap | Cambiar Opportunity vs. Cambiar Opportunity Fund | Cambiar Opportunity vs. Cambiar Smid Fund |
| Mondrian Emerging vs. Mondrian Global Equity | Mondrian Emerging vs. Mondrian International Value | Mondrian Emerging vs. Mondrian Global Listed | Mondrian Emerging vs. Q3 All Weather Sector |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |