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 Value and Cambria Global Asset, 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
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cambria and Cambria is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Cambria Global Value and Cambria Global Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambria Global Asset 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 Value 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 Asset 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 Value is expected to under-perform the Cambria Global. In addition to that, Cambria Global is 1.76 times more volatile than Cambria Global Asset. It trades about -0.11 of its total potential returns per unit of risk. Cambria Global Asset is currently generating about 0.08 per unit of volatility. If you would invest 2,905 in Cambria Global Asset on August 31, 2024 and sell it today you would earn a total of 28.00 from holding Cambria Global Asset or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cambria Global Value vs. Cambria Global Asset
Performance |
| Timeline |
| Cambria Global Value |
| Cambria Global Asset |
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. Schwab Fundamental International | Cambria Global vs. Schwab Fundamental Emerging | Cambria Global vs. Schwab Fundamental Small | Cambria Global vs. Schwab Fundamental Large |
| Cambria Global vs. Cambria Global Momentum | Cambria Global vs. Cambria Global Value | Cambria Global vs. Cambria Foreign Shareholder | Cambria Global vs. Cambria Trinity ETF |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |