Correlation Between Cambria Emerging and Core Alternative
Can any of the company-specific risk be diversified away by investing in both Cambria Emerging and Core Alternative 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 Cambria Emerging and Core Alternative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cambria Emerging Shareholder and Core Alternative ETF, you can compare the effects of market volatilities on Cambria Emerging and Core Alternative 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 Cambria Emerging with a short position of Core Alternative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambria Emerging and Core Alternative.
Diversification Opportunities for Cambria Emerging and Core Alternative
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cambria and Core is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Cambria Emerging Shareholder and Core Alternative ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Alternative ETF and Cambria Emerging 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 Cambria Emerging Shareholder are associated (or correlated) with Core Alternative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Alternative ETF has no effect on the direction of Cambria Emerging i.e., Cambria Emerging and Core Alternative go up and down completely randomly.
Pair Corralation between Cambria Emerging and Core Alternative
Given the investment horizon of 90 days Cambria Emerging Shareholder is expected to generate 0.87 times more return on investment than Core Alternative. However, Cambria Emerging Shareholder is 1.15 times less risky than Core Alternative. It trades about 0.2 of its potential returns per unit of risk. Core Alternative ETF is currently generating about -0.01 per unit of risk. If you would invest 3,132 in Cambria Emerging Shareholder on November 18, 2024 and sell it today you would earn a total of 98.00 from holding Cambria Emerging Shareholder or generate 3.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cambria Emerging Shareholder vs. Core Alternative ETF
Performance |
| Timeline |
| Cambria Emerging Sha |
| Core Alternative ETF |
Cambria Emerging and Core Alternative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambria Emerging and Core Alternative
The main advantage of trading using opposite Cambria Emerging and Core Alternative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambria Emerging position performs unexpectedly, Core Alternative 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 Core Alternative will offset losses from the drop in Core Alternative's long position.| Cambria Emerging vs. Cambria Foreign Shareholder | Cambria Emerging vs. Cambria Global Value | Cambria Emerging vs. Cambria Global Momentum | Cambria Emerging vs. Cambria Value and |
| Core Alternative vs. AGFiQ Market Neutral | Core Alternative vs. Cambria Global Momentum | Core Alternative vs. Cambria Global Asset | Core Alternative vs. Cambria Emerging Shareholder |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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