Correlation Between Cambiar Smid and Champlain Mid
Can any of the company-specific risk be diversified away by investing in both Cambiar Smid and Champlain Mid 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 Smid and Champlain Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cambiar Smid Fund and Champlain Mid Cap, you can compare the effects of market volatilities on Cambiar Smid and Champlain Mid 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 Smid with a short position of Champlain Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambiar Smid and Champlain Mid.
Diversification Opportunities for Cambiar Smid and Champlain Mid
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cambiar and Champlain is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Cambiar Smid Fund and Champlain Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champlain Mid Cap and Cambiar Smid 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 Smid Fund are associated (or correlated) with Champlain Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champlain Mid Cap has no effect on the direction of Cambiar Smid i.e., Cambiar Smid and Champlain Mid go up and down completely randomly.
Pair Corralation between Cambiar Smid and Champlain Mid
Assuming the 90 days horizon Cambiar Smid is expected to generate 1.4 times less return on investment than Champlain Mid. But when comparing it to its historical volatility, Cambiar Smid Fund is 1.15 times less risky than Champlain Mid. It trades about 0.05 of its potential returns per unit of risk. Champlain Mid Cap is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,053 in Champlain Mid Cap on August 28, 2024 and sell it today you would earn a total of 567.00 from holding Champlain Mid Cap or generate 27.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cambiar Smid Fund vs. Champlain Mid Cap
Performance |
| Timeline |
| Cambiar Smid |
| Champlain Mid Cap |
Cambiar Smid and Champlain Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambiar Smid and Champlain Mid
The main advantage of trading using opposite Cambiar Smid and Champlain Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambiar Smid position performs unexpectedly, Champlain Mid 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 Champlain Mid will offset losses from the drop in Champlain Mid's long position.| Cambiar Smid vs. Cambiar International Equity | Cambiar Smid vs. Cambiar Small Cap | Cambiar Smid vs. Cambiar Opportunity Fund | Cambiar Smid vs. Cambiar Small Cap |
| Champlain Mid vs. Champlain Small Pany | Champlain Mid vs. T Rowe Price | Champlain Mid vs. American Mutual Fund | Champlain Mid vs. Loomis Sayles Growth |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |