Correlation Between Cambiar Aggressive and IShares Core
Can any of the company-specific risk be diversified away by investing in both Cambiar Aggressive and IShares Core 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 Aggressive and IShares Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cambiar Aggressive Value and iShares Core SP, you can compare the effects of market volatilities on Cambiar Aggressive and IShares Core 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 Aggressive with a short position of IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambiar Aggressive and IShares Core.
Diversification Opportunities for Cambiar Aggressive and IShares Core
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cambiar and IShares is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Cambiar Aggressive Value and iShares Core SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core SP and Cambiar Aggressive 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 Aggressive Value are associated (or correlated) with IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core SP has no effect on the direction of Cambiar Aggressive i.e., Cambiar Aggressive and IShares Core go up and down completely randomly.
Pair Corralation between Cambiar Aggressive and IShares Core
Given the investment horizon of 90 days Cambiar Aggressive is expected to generate 1.81 times less return on investment than IShares Core. But when comparing it to its historical volatility, Cambiar Aggressive Value is 1.24 times less risky than IShares Core. It trades about 0.07 of its potential returns per unit of risk. iShares Core SP is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 8,427 in iShares Core SP on September 1, 2024 and sell it today you would earn a total of 5,473 from holding iShares Core SP or generate 64.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 91.72% |
| Values | Daily Returns |
Cambiar Aggressive Value vs. iShares Core SP
Performance |
| Timeline |
| Cambiar Aggressive Value |
| iShares Core SP |
Cambiar Aggressive and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambiar Aggressive and IShares Core
The main advantage of trading using opposite Cambiar Aggressive and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambiar Aggressive position performs unexpectedly, IShares Core 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 IShares Core will offset losses from the drop in IShares Core's long position.| Cambiar Aggressive vs. iShares Core SP | Cambiar Aggressive vs. iShares Core MSCI | Cambiar Aggressive vs. iShares Broad USD | Cambiar Aggressive vs. iShares Core SP |
| IShares Core vs. iShares Core SP | IShares Core vs. iShares Core SP | IShares Core vs. iShares Russell Top | IShares Core vs. iShares Core MSCI |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |