Correlation Between Cambria Global and Cambria Global
Can any of the company-specific risk be diversified away by investing in both Cambria Global 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 Cambria Global and Cambria Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cambria Global Momentum and Cambria Global Value, you can compare the effects of market volatilities on Cambria Global 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 Cambria Global with a short position of Cambria Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambria Global and Cambria Global.
Diversification Opportunities for Cambria Global and Cambria Global
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cambria and Cambria is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Cambria Global Momentum 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 Cambria 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 Cambria Global Momentum 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 Cambria Global i.e., Cambria Global and Cambria Global go up and down completely randomly.
Pair Corralation between Cambria Global and Cambria Global
Given the investment horizon of 90 days Cambria Global Momentum is expected to generate 0.89 times more return on investment than Cambria Global. However, Cambria Global Momentum is 1.12 times less risky than Cambria Global. It trades about 0.11 of its potential returns per unit of risk. Cambria Global Value is currently generating about -0.18 per unit of risk. If you would invest 2,967 in Cambria Global Momentum on August 28, 2024 and sell it today you would earn a total of 60.00 from holding Cambria Global Momentum or generate 2.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cambria Global Momentum vs. Cambria Global Value
Performance |
| Timeline |
| Cambria Global Momentum |
| Cambria Global Value |
Cambria Global and Cambria Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambria Global and Cambria Global
The main advantage of trading using opposite Cambria Global and Cambria Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambria Global 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.| Cambria Global vs. Cambria Global Asset | Cambria Global vs. Cambria Global Value | Cambria Global vs. Cambria Foreign Shareholder | Cambria Global vs. Cambria Value and |
| Cambria Global vs. Cambria Foreign Shareholder | Cambria Global vs. Cambria Global Momentum | Cambria Global vs. Cambria Emerging Shareholder | Cambria Global vs. Cambria Global Asset |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |