Correlation Between NYSE Composite and Cambiar Aggressive
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Cambiar Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Cambiar Aggressive Value, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Cambiar Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Cambiar Aggressive.
Diversification Opportunities for NYSE Composite and Cambiar Aggressive
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NYSE and Cambiar is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Cambiar Aggressive go up and down completely randomly.
Pair Corralation between NYSE Composite and Cambiar Aggressive
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.87 times more return on investment than Cambiar Aggressive. However, NYSE Composite is 1.15 times less risky than Cambiar Aggressive. It trades about 0.43 of its potential returns per unit of risk. Cambiar Aggressive Value is currently generating about 0.29 per unit of risk. If you would invest 1,924,339 in NYSE Composite on September 3, 2024 and sell it today you would earn a total of 102,865 from holding NYSE Composite or generate 5.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Cambiar Aggressive Value
Performance |
| Timeline |
NYSE Composite and Cambiar Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Cambiar Aggressive Value
Pair trading matchups for Cambiar Aggressive
Pair Trading with NYSE Composite and Cambiar Aggressive
The main advantage of trading using opposite NYSE Composite and Cambiar Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Lindblad Expeditions Holdings | NYSE Composite vs. LB Foster | NYSE Composite vs. HUTCHMED DRC | NYSE Composite vs. Bridgford Foods |
| Cambiar Aggressive vs. Horizon Kinetics Inflation | Cambiar Aggressive vs. Simplify Exchange Traded | Cambiar Aggressive vs. iMGP DBi Managed | Cambiar Aggressive vs. Quadratic Interest Rate |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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