Correlation Between Cambiar International and Brandes International
Can any of the company-specific risk be diversified away by investing in both Cambiar International and Brandes International 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 Brandes International 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 Brandes International Small, you can compare the effects of market volatilities on Cambiar International and Brandes International 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 Brandes International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambiar International and Brandes International.
Diversification Opportunities for Cambiar International and Brandes International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cambiar and Brandes is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cambiar International Equity and Brandes International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brandes International 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 Brandes International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brandes International has no effect on the direction of Cambiar International i.e., Cambiar International and Brandes International go up and down completely randomly.
Pair Corralation between Cambiar International and Brandes International
If you would invest 1,807 in Brandes International Small on November 28, 2024 and sell it today you would earn a total of 203.00 from holding Brandes International Small or generate 11.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Cambiar International Equity vs. Brandes International Small
Performance |
| Timeline |
| Cambiar International |
Risk-Adjusted Performance
Good
Weak | Strong |
| Brandes International |
Cambiar International and Brandes International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambiar International and Brandes International
The main advantage of trading using opposite Cambiar International and Brandes International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambiar International position performs unexpectedly, Brandes International 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 Brandes International will offset losses from the drop in Brandes International's long position.| Cambiar International vs. Congress Mid Cap | Cambiar International vs. Brandes International Small | Cambiar International vs. Johcm International Select | Cambiar International vs. Causeway Emerging Markets |
| Brandes International vs. Profunds Large Cap Growth | Brandes International vs. Legg Mason Partners | Brandes International vs. Tiaa Cref Large Cap Growth | Brandes International vs. Fisher Large Cap |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Transaction History View history of all your transactions and understand their impact on performance |