Correlation Between SPDR Global and Cambiar Aggressive
Can any of the company-specific risk be diversified away by investing in both SPDR Global and Cambiar Aggressive 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 SPDR Global and Cambiar Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Global Dow and Cambiar Aggressive Value, you can compare the effects of market volatilities on SPDR Global and Cambiar Aggressive 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 SPDR Global with a short position of Cambiar Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Global and Cambiar Aggressive.
Diversification Opportunities for SPDR Global and Cambiar Aggressive
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPDR and Cambiar is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Global Dow and Cambiar Aggressive Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambiar Aggressive Value and SPDR Global 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 SPDR Global Dow are associated (or correlated) with Cambiar Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambiar Aggressive Value has no effect on the direction of SPDR Global i.e., SPDR Global and Cambiar Aggressive go up and down completely randomly.
Pair Corralation between SPDR Global and Cambiar Aggressive
Considering the 90-day investment horizon SPDR Global Dow is expected to generate 0.93 times more return on investment than Cambiar Aggressive. However, SPDR Global Dow is 1.08 times less risky than Cambiar Aggressive. It trades about 0.08 of its potential returns per unit of risk. Cambiar Aggressive Value is currently generating about 0.07 per unit of risk. If you would invest 12,897 in SPDR Global Dow on September 3, 2024 and sell it today you would earn a total of 901.00 from holding SPDR Global Dow or generate 6.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Global Dow vs. Cambiar Aggressive Value
Performance |
| Timeline |
| SPDR Global Dow |
| Cambiar Aggressive Value |
SPDR Global and Cambiar Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Global and Cambiar Aggressive
The main advantage of trading using opposite SPDR Global and Cambiar Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Global position performs unexpectedly, Cambiar Aggressive 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 Cambiar Aggressive will offset losses from the drop in Cambiar Aggressive's long position.| SPDR Global vs. iShares Global 100 | SPDR Global vs. iShares MSCI Belgium | SPDR Global vs. iShares MSCI Netherlands | SPDR Global vs. iShares Dow Jones |
| Cambiar Aggressive vs. Horizon Kinetics Inflation | Cambiar Aggressive vs. Simplify Exchange Traded | Cambiar Aggressive vs. iMGP DBi Managed | Cambiar Aggressive vs. Quadratic Interest Rate |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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