Correlation Between T Rex and Cambria
Can any of the company-specific risk be diversified away by investing in both T Rex and Cambria 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 T Rex and Cambria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T Rex 2X Long and Cambria, you can compare the effects of market volatilities on T Rex and Cambria 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 T Rex with a short position of Cambria. Check out your portfolio center. Please also check ongoing floating volatility patterns of T Rex and Cambria.
Diversification Opportunities for T Rex and Cambria
Pay attention - limited upside
The 3 months correlation between NVDX and Cambria is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding T Rex 2X Long and Cambria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambria and T Rex 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 T Rex 2X Long are associated (or correlated) with Cambria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambria has no effect on the direction of T Rex i.e., T Rex and Cambria go up and down completely randomly.
Pair Corralation between T Rex and Cambria
If you would invest 1,020 in T Rex 2X Long on November 28, 2024 and sell it today you would earn a total of 166.00 from holding T Rex 2X Long or generate 16.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
T Rex 2X Long vs. Cambria
Performance |
| Timeline |
| T Rex 2X |
| Cambria |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
T Rex and Cambria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T Rex and Cambria
The main advantage of trading using opposite T Rex and Cambria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T Rex position performs unexpectedly, Cambria 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 will offset losses from the drop in Cambria's long position.| T Rex vs. Strategy Shares | T Rex vs. Freedom Day Dividend | T Rex vs. Franklin Templeton ETF | T Rex vs. iShares MSCI China |
| Cambria vs. Cambria Tail Risk | Cambria vs. Cambria Trinity ETF | Cambria vs. Cambria Emerging Shareholder | Cambria vs. Cambria Global Momentum |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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