Correlation Between Dawson Geophysical and Cambria Global
Can any of the company-specific risk be diversified away by investing in both Dawson Geophysical and Cambria Global 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 Dawson Geophysical and Cambria Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dawson Geophysical and Cambria Global Value, you can compare the effects of market volatilities on Dawson Geophysical and Cambria Global 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 Dawson Geophysical with a short position of Cambria Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dawson Geophysical and Cambria Global.
Diversification Opportunities for Dawson Geophysical and Cambria Global
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dawson and Cambria is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Dawson Geophysical and Cambria Global Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambria Global Value and Dawson Geophysical 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 Dawson Geophysical are associated (or correlated) with Cambria Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambria Global Value has no effect on the direction of Dawson Geophysical i.e., Dawson Geophysical and Cambria Global go up and down completely randomly.
Pair Corralation between Dawson Geophysical and Cambria Global
Given the investment horizon of 90 days Dawson Geophysical is expected to generate 6.53 times more return on investment than Cambria Global. However, Dawson Geophysical is 6.53 times more volatile than Cambria Global Value. It trades about 0.02 of its potential returns per unit of risk. Cambria Global Value is currently generating about 0.05 per unit of risk. If you would invest 182.00 in Dawson Geophysical on September 3, 2024 and sell it today you would lose (32.00) from holding Dawson Geophysical or give up 17.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.39% |
| Values | Daily Returns |
Dawson Geophysical vs. Cambria Global Value
Performance |
| Timeline |
| Dawson Geophysical |
| Cambria Global Value |
Dawson Geophysical and Cambria Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dawson Geophysical and Cambria Global
The main advantage of trading using opposite Dawson Geophysical and Cambria Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dawson Geophysical position performs unexpectedly, Cambria Global 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 Cambria Global will offset losses from the drop in Cambria Global's long position.| Dawson Geophysical vs. NXT Energy Solutions | Dawson Geophysical vs. Mccoy Global | Dawson Geophysical vs. National Energy Services | Dawson Geophysical vs. Ranger Energy Services |
| Cambria Global vs. Dawson Geophysical | Cambria Global vs. Oceaneering International | Cambria Global vs. Sprott Inc | Cambria Global vs. Bolt Biotherapeutics |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| 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 |