Correlation Between Cambria Emerging and Cambria Shareholder
Can any of the company-specific risk be diversified away by investing in both Cambria Emerging and Cambria Shareholder 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 Cambria Shareholder 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 Cambria Shareholder Yield, you can compare the effects of market volatilities on Cambria Emerging and Cambria Shareholder 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 Cambria Shareholder. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambria Emerging and Cambria Shareholder.
Diversification Opportunities for Cambria Emerging and Cambria Shareholder
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cambria and Cambria is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Cambria Emerging Shareholder and Cambria Shareholder Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambria Shareholder Yield 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 Cambria Shareholder. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambria Shareholder Yield has no effect on the direction of Cambria Emerging i.e., Cambria Emerging and Cambria Shareholder go up and down completely randomly.
Pair Corralation between Cambria Emerging and Cambria Shareholder
Given the investment horizon of 90 days Cambria Emerging Shareholder is expected to under-perform the Cambria Shareholder. But the etf apears to be less risky and, when comparing its historical volatility, Cambria Emerging Shareholder is 1.24 times less risky than Cambria Shareholder. The etf trades about -0.11 of its potential returns per unit of risk. The Cambria Shareholder Yield is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 7,132 in Cambria Shareholder Yield on August 28, 2024 and sell it today you would earn a total of 495.00 from holding Cambria Shareholder Yield or generate 6.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cambria Emerging Shareholder vs. Cambria Shareholder Yield
Performance |
| Timeline |
| Cambria Emerging Sha |
| Cambria Shareholder Yield |
Cambria Emerging and Cambria Shareholder Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambria Emerging and Cambria Shareholder
The main advantage of trading using opposite Cambria Emerging and Cambria Shareholder positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambria Emerging position performs unexpectedly, Cambria Shareholder 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 Shareholder will offset losses from the drop in Cambria Shareholder'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 |
| Cambria Shareholder vs. Cambria Foreign Shareholder | Cambria Shareholder vs. Invesco BuyBack Achievers | Cambria Shareholder vs. Cambria Global Value | Cambria Shareholder vs. Cambria Value and |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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