Correlation Between IShares SP and Cambiar Aggressive
Can any of the company-specific risk be diversified away by investing in both IShares SP and Cambiar Aggressive 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 Cambiar Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares SP 500 and Cambiar Aggressive Value, you can compare the effects of market volatilities on IShares SP and Cambiar Aggressive 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 Cambiar Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares SP and Cambiar Aggressive.
Diversification Opportunities for IShares SP and Cambiar Aggressive
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IShares and Cambiar is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding iShares SP 500 and Cambiar Aggressive Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambiar Aggressive Value 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 500 are associated (or correlated) with Cambiar Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambiar Aggressive Value has no effect on the direction of IShares SP i.e., IShares SP and Cambiar Aggressive go up and down completely randomly.
Pair Corralation between IShares SP and Cambiar Aggressive
Considering the 90-day investment horizon iShares SP 500 is expected to generate 0.94 times more return on investment than Cambiar Aggressive. However, iShares SP 500 is 1.07 times less risky than Cambiar Aggressive. It trades about 0.1 of its potential returns per unit of risk. Cambiar Aggressive Value is currently generating about 0.09 per unit of risk. If you would invest 14,641 in iShares SP 500 on November 27, 2024 and sell it today you would earn a total of 5,024 from holding iShares SP 500 or generate 34.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares SP 500 vs. Cambiar Aggressive Value
Performance |
| Timeline |
| iShares SP 500 |
| Cambiar Aggressive Value |
IShares SP and Cambiar Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares SP and Cambiar Aggressive
The main advantage of trading using opposite IShares SP and Cambiar Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares SP position performs unexpectedly, Cambiar Aggressive 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 Aggressive will offset losses from the drop in Cambiar Aggressive's long position.| IShares SP vs. iShares SP 500 | IShares SP vs. iShares SP Mid Cap | IShares SP vs. iShares SP Small Cap | IShares SP vs. iShares SP Mid Cap |
| Cambiar Aggressive vs. Davis Select International | Cambiar Aggressive vs. Principal Value ETF | Cambiar Aggressive vs. WisdomTree Emerging Markets | Cambiar Aggressive vs. Ballast SmallMid Cap |
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 Stocks Directory module to find actively traded stocks across global markets.
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