Correlation Between Cambria Micro and Astoria Quality
Can any of the company-specific risk be diversified away by investing in both Cambria Micro and Astoria Quality 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 Micro and Astoria Quality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cambria Micro And and Astoria Quality Kings, you can compare the effects of market volatilities on Cambria Micro and Astoria Quality 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 Micro with a short position of Astoria Quality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambria Micro and Astoria Quality.
Diversification Opportunities for Cambria Micro and Astoria Quality
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cambria and Astoria is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Cambria Micro And and Astoria Quality Kings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astoria Quality Kings and Cambria Micro 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 Micro And are associated (or correlated) with Astoria Quality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astoria Quality Kings has no effect on the direction of Cambria Micro i.e., Cambria Micro and Astoria Quality go up and down completely randomly.
Pair Corralation between Cambria Micro and Astoria Quality
Given the investment horizon of 90 days Cambria Micro And is expected to generate 1.89 times more return on investment than Astoria Quality. However, Cambria Micro is 1.89 times more volatile than Astoria Quality Kings. It trades about 0.1 of its potential returns per unit of risk. Astoria Quality Kings is currently generating about 0.14 per unit of risk. If you would invest 2,667 in Cambria Micro And on August 29, 2024 and sell it today you would earn a total of 155.00 from holding Cambria Micro And or generate 5.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cambria Micro And vs. Astoria Quality Kings
Performance |
| Timeline |
| Cambria Micro And |
| Astoria Quality Kings |
Cambria Micro and Astoria Quality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambria Micro and Astoria Quality
The main advantage of trading using opposite Cambria Micro and Astoria Quality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambria Micro position performs unexpectedly, Astoria Quality 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 Astoria Quality will offset losses from the drop in Astoria Quality's long position.| Cambria Micro vs. FT Vest Equity | Cambria Micro vs. Northern Lights | Cambria Micro vs. Dimensional International High | Cambria Micro vs. First Trust Exchange Traded |
| Astoria Quality vs. Invesco Actively Managed | Astoria Quality vs. iShares Trust | Astoria Quality vs. Xtrackers MSCI Emerging | Astoria Quality vs. iShares MSCI Emerging |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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