Correlation Between Cambria Emerging and Cambria Trinity
Can any of the company-specific risk be diversified away by investing in both Cambria Emerging and Cambria Trinity 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 Trinity 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 Trinity ETF, you can compare the effects of market volatilities on Cambria Emerging and Cambria Trinity 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 Trinity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambria Emerging and Cambria Trinity.
Diversification Opportunities for Cambria Emerging and Cambria Trinity
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cambria and Cambria is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cambria Emerging Shareholder and Cambria Trinity ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambria Trinity 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 Cambria Trinity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambria Trinity ETF has no effect on the direction of Cambria Emerging i.e., Cambria Emerging and Cambria Trinity go up and down completely randomly.
Pair Corralation between Cambria Emerging and Cambria Trinity
If you would invest 2,579 in Cambria Trinity ETF on August 30, 2024 and sell it today you would earn a total of 49.00 from holding Cambria Trinity ETF or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Cambria Emerging Shareholder vs. Cambria Trinity ETF
Performance |
| Timeline |
| Cambria Emerging Sha |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cambria Trinity ETF |
Cambria Emerging and Cambria Trinity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambria Emerging and Cambria Trinity
The main advantage of trading using opposite Cambria Emerging and Cambria Trinity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambria Emerging position performs unexpectedly, Cambria Trinity 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 Trinity will offset losses from the drop in Cambria Trinity's long position.| Cambria Emerging vs. Cambria Foreign Shareholder | Cambria Emerging vs. Cambria Global Momentum | Cambria Emerging vs. Cambria Global Asset |
| Cambria Trinity vs. Cambria Global Asset | Cambria Trinity vs. Cambria Global Momentum | Cambria Trinity vs. Cambria Emerging Shareholder | Cambria Trinity vs. Cambria Foreign 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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