Correlation Between IShares SP and Cambria Shareholder
Can any of the company-specific risk be diversified away by investing in both IShares SP 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 IShares SP and Cambria Shareholder into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares SP Mid Cap and Cambria Shareholder Yield, you can compare the effects of market volatilities on IShares SP 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 IShares SP with a short position of Cambria Shareholder. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares SP and Cambria Shareholder.
Diversification Opportunities for IShares SP and Cambria Shareholder
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and Cambria is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding iShares SP Mid Cap 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 IShares SP 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 iShares SP Mid Cap 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 IShares SP i.e., IShares SP and Cambria Shareholder go up and down completely randomly.
Pair Corralation between IShares SP and Cambria Shareholder
Considering the 90-day investment horizon iShares SP Mid Cap is expected to generate 1.06 times more return on investment than Cambria Shareholder. However, IShares SP is 1.06 times more volatile than Cambria Shareholder Yield. It trades about 0.26 of its potential returns per unit of risk. Cambria Shareholder Yield is currently generating about 0.26 per unit of risk. If you would invest 12,515 in iShares SP Mid Cap on August 31, 2024 and sell it today you would earn a total of 948.00 from holding iShares SP Mid Cap or generate 7.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares SP Mid Cap vs. Cambria Shareholder Yield
Performance |
| Timeline |
| iShares SP Mid |
| Cambria Shareholder Yield |
IShares SP and Cambria Shareholder Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares SP and Cambria Shareholder
The main advantage of trading using opposite IShares SP and Cambria Shareholder positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares SP 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.| IShares SP vs. iShares SP Mid Cap | IShares SP vs. iShares SP Small Cap | IShares SP vs. iShares SP Small Cap | IShares SP vs. iShares SP 500 |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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