Correlation Between Cambiar Small and Virtus Emerging
Can any of the company-specific risk be diversified away by investing in both Cambiar Small and Virtus 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 Small and Virtus Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cambiar Small Cap and Virtus Emerging Markets, you can compare the effects of market volatilities on Cambiar Small and Virtus 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 Small with a short position of Virtus Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambiar Small and Virtus Emerging.
Diversification Opportunities for Cambiar Small and Virtus Emerging
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cambiar and Virtus is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Cambiar Small Cap and Virtus Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Emerging Markets and Cambiar Small 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 Small Cap are associated (or correlated) with Virtus Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Emerging Markets has no effect on the direction of Cambiar Small i.e., Cambiar Small and Virtus Emerging go up and down completely randomly.
Pair Corralation between Cambiar Small and Virtus Emerging
Assuming the 90 days horizon Cambiar Small Cap is expected to generate 1.76 times more return on investment than Virtus Emerging. However, Cambiar Small is 1.76 times more volatile than Virtus Emerging Markets. It trades about 0.3 of its potential returns per unit of risk. Virtus Emerging Markets is currently generating about -0.12 per unit of risk. If you would invest 1,744 in Cambiar Small Cap on September 2, 2024 and sell it today you would earn a total of 157.00 from holding Cambiar Small Cap or generate 9.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cambiar Small Cap vs. Virtus Emerging Markets
Performance |
| Timeline |
| Cambiar Small Cap |
| Virtus Emerging Markets |
Cambiar Small and Virtus Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambiar Small and Virtus Emerging
The main advantage of trading using opposite Cambiar Small and Virtus Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambiar Small position performs unexpectedly, Virtus 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 Virtus Emerging will offset losses from the drop in Virtus Emerging's long position.| Cambiar Small vs. Jpmorgan Dynamic Small | Cambiar Small vs. Cambiar Opportunity Fund | Cambiar Small vs. Virtus Emerging Markets | Cambiar Small vs. Cambiar International Equity |
| Virtus Emerging vs. Metropolitan West Total | Virtus Emerging vs. Janus Flexible Bond | Virtus Emerging vs. Eaton Vance Income | Virtus Emerging vs. Mfs Emerging Markets |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |