Correlation Between Astoria Quality and Cambria Micro
Can any of the company-specific risk be diversified away by investing in both Astoria Quality and Cambria Micro 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 Astoria Quality and Cambria Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astoria Quality Kings and Cambria Micro And, you can compare the effects of market volatilities on Astoria Quality and Cambria Micro 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 Astoria Quality with a short position of Cambria Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astoria Quality and Cambria Micro.
Diversification Opportunities for Astoria Quality and Cambria Micro
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Astoria and Cambria is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Astoria Quality Kings and Cambria Micro And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambria Micro And and Astoria Quality 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 Astoria Quality Kings are associated (or correlated) with Cambria Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambria Micro And has no effect on the direction of Astoria Quality i.e., Astoria Quality and Cambria Micro go up and down completely randomly.
Pair Corralation between Astoria Quality and Cambria Micro
Considering the 90-day investment horizon Astoria Quality is expected to generate 1.56 times less return on investment than Cambria Micro. But when comparing it to its historical volatility, Astoria Quality Kings is 2.06 times less risky than Cambria Micro. It trades about 0.29 of its potential returns per unit of risk. Cambria Micro And is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,617 in Cambria Micro And on August 29, 2024 and sell it today you would earn a total of 205.00 from holding Cambria Micro And or generate 7.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astoria Quality Kings vs. Cambria Micro And
Performance |
| Timeline |
| Astoria Quality Kings |
| Cambria Micro And |
Astoria Quality and Cambria Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astoria Quality and Cambria Micro
The main advantage of trading using opposite Astoria Quality and Cambria Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astoria Quality position performs unexpectedly, Cambria Micro 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 Micro will offset losses from the drop in Cambria Micro's long position.| Astoria Quality vs. BlackRock ETF Trust | Astoria Quality vs. Rbb Fund | Astoria Quality vs. Virtus ETF Trust | Astoria Quality vs. Amplify CWP Enhanced |
| Cambria Micro vs. Invesco Actively Managed | Cambria Micro vs. iShares Trust | Cambria Micro vs. EMCS | Cambria Micro vs. Research Affiliates Deletions |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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