Correlation Between Performance Trust and Cambiar Smid
Can any of the company-specific risk be diversified away by investing in both Performance Trust and Cambiar Smid 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 Performance Trust and Cambiar Smid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Performance Trust Strategic and Cambiar Smid Fund, you can compare the effects of market volatilities on Performance Trust and Cambiar Smid 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 Performance Trust with a short position of Cambiar Smid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Performance Trust and Cambiar Smid.
Diversification Opportunities for Performance Trust and Cambiar Smid
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PERFORMANCE and Cambiar is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Performance Trust Strategic and Cambiar Smid Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambiar Smid and Performance Trust 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 Performance Trust Strategic are associated (or correlated) with Cambiar Smid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambiar Smid has no effect on the direction of Performance Trust i.e., Performance Trust and Cambiar Smid go up and down completely randomly.
Pair Corralation between Performance Trust and Cambiar Smid
Assuming the 90 days horizon Performance Trust is expected to generate 4.0 times less return on investment than Cambiar Smid. But when comparing it to its historical volatility, Performance Trust Strategic is 2.66 times less risky than Cambiar Smid. It trades about 0.11 of its potential returns per unit of risk. Cambiar Smid Fund is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,493 in Cambiar Smid Fund on August 30, 2024 and sell it today you would earn a total of 96.00 from holding Cambiar Smid Fund or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Performance Trust Strategic vs. Cambiar Smid Fund
Performance |
| Timeline |
| Performance Trust |
| Cambiar Smid |
Performance Trust and Cambiar Smid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Performance Trust and Cambiar Smid
The main advantage of trading using opposite Performance Trust and Cambiar Smid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Performance Trust position performs unexpectedly, Cambiar Smid 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 Smid will offset losses from the drop in Cambiar Smid's long position.| Performance Trust vs. Alphacentric Income Opportunities | Performance Trust vs. Performance Trust Municipal | Performance Trust vs. Guggenheim Total Return | Performance Trust vs. Pimco Income Fund |
| Cambiar Smid vs. Nebraska Municipal Fund | Cambiar Smid vs. T Rowe Price | Cambiar Smid vs. Federated Short Intermediate Duration | Cambiar Smid vs. Performance Trust Strategic |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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