Correlation Between Banking Fund and Cambiar Smid
Can any of the company-specific risk be diversified away by investing in both Banking Fund 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 Banking Fund and Cambiar Smid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banking Fund Class and Cambiar Smid Fund, you can compare the effects of market volatilities on Banking Fund 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 Banking Fund with a short position of Cambiar Smid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banking Fund and Cambiar Smid.
Diversification Opportunities for Banking Fund and Cambiar Smid
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BANKING and Cambiar is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Banking Fund Class and Cambiar Smid Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambiar Smid and Banking Fund 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 Banking Fund Class 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 Banking Fund i.e., Banking Fund and Cambiar Smid go up and down completely randomly.
Pair Corralation between Banking Fund and Cambiar Smid
Assuming the 90 days horizon Banking Fund Class is expected to generate 1.52 times more return on investment than Cambiar Smid. However, Banking Fund is 1.52 times more volatile than Cambiar Smid Fund. It trades about 0.09 of its potential returns per unit of risk. Cambiar Smid Fund is currently generating about -0.01 per unit of risk. If you would invest 7,320 in Banking Fund Class on November 28, 2024 and sell it today you would earn a total of 1,818 from holding Banking Fund Class or generate 24.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.46% |
| Values | Daily Returns |
Banking Fund Class vs. Cambiar Smid Fund
Performance |
| Timeline |
| Banking Fund Class |
| Cambiar Smid |
Banking Fund and Cambiar Smid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banking Fund and Cambiar Smid
The main advantage of trading using opposite Banking Fund and Cambiar Smid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banking Fund 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.| Banking Fund vs. Calvert Global Energy | Banking Fund vs. Transamerica Mlp Energy | Banking Fund vs. Salient Mlp Energy | Banking Fund vs. Pimco Energy Tactical |
| Cambiar Smid vs. T Rowe Price | Cambiar Smid vs. Delaware Investments Ultrashort | Cambiar Smid vs. Angel Oak Ultrashort | Cambiar Smid vs. Transam Short Term Bond |
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.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |