Correlation Between Congress Mid and Cambiar International
Can any of the company-specific risk be diversified away by investing in both Congress Mid and Cambiar International 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 Congress Mid and Cambiar International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Congress Mid Cap and Cambiar International Equity, you can compare the effects of market volatilities on Congress Mid and Cambiar International 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 Congress Mid with a short position of Cambiar International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Congress Mid and Cambiar International.
Diversification Opportunities for Congress Mid and Cambiar International
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Congress and Cambiar is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Congress Mid Cap and Cambiar International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambiar International and Congress Mid 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 Congress Mid Cap are associated (or correlated) with Cambiar International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambiar International has no effect on the direction of Congress Mid i.e., Congress Mid and Cambiar International go up and down completely randomly.
Pair Corralation between Congress Mid and Cambiar International
Assuming the 90 days horizon Congress Mid Cap is expected to generate 1.3 times more return on investment than Cambiar International. However, Congress Mid is 1.3 times more volatile than Cambiar International Equity. It trades about 0.07 of its potential returns per unit of risk. Cambiar International Equity is currently generating about 0.02 per unit of risk. If you would invest 2,514 in Congress Mid Cap on September 1, 2024 and sell it today you would earn a total of 232.00 from holding Congress Mid Cap or generate 9.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Congress Mid Cap vs. Cambiar International Equity
Performance |
| Timeline |
| Congress Mid Cap |
| Cambiar International |
Congress Mid and Cambiar International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Congress Mid and Cambiar International
The main advantage of trading using opposite Congress Mid and Cambiar International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Congress Mid position performs unexpectedly, Cambiar International 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 Cambiar International will offset losses from the drop in Cambiar International's long position.| Congress Mid vs. Polen Growth Fund | Congress Mid vs. Segall Bryant Hamill | Congress Mid vs. Diamond Hill All | Congress Mid vs. Wells Fargo Index |
| Cambiar International vs. Congress Mid Cap | Cambiar International vs. Brandes International Small | Cambiar International vs. Johcm International Select | Cambiar International vs. Causeway Emerging Markets |
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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