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 Momentum, 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
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cambria and Cambria is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Cambria Global Value and Cambria Global Momentum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambria Global Momentum 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 Momentum 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 generate 1.07 times more return on investment than Cambria Global. However, Cambria Global is 1.07 times more volatile than Cambria Global Momentum. It trades about 0.05 of its potential returns per unit of risk. Cambria Global Momentum is currently generating about 0.03 per unit of risk. If you would invest 1,728 in Cambria Global Value on August 24, 2024 and sell it today you would earn a total of 371.00 from holding Cambria Global Value or generate 21.47% 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 Value vs. Cambria Global Momentum
Performance |
| Timeline |
| Cambria Global Value |
| Cambria Global Momentum |
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 Foreign Shareholder | Cambria Global vs. Cambria Global Momentum | Cambria Global vs. Cambria Emerging Shareholder | Cambria Global vs. Cambria Global Asset |
| Cambria Global vs. Cambria Global Asset | Cambria Global vs. Cambria Global Value | Cambria Global vs. Cambria Foreign Shareholder | Cambria Global 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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