Correlation Between Short Oil and Cambiar Opportunity
Can any of the company-specific risk be diversified away by investing in both Short Oil and Cambiar Opportunity 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 Short Oil and Cambiar Opportunity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Short Oil Gas and Cambiar Opportunity Fund, you can compare the effects of market volatilities on Short Oil and Cambiar Opportunity 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 Short Oil with a short position of Cambiar Opportunity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Short Oil and Cambiar Opportunity.
Diversification Opportunities for Short Oil and Cambiar Opportunity
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Short and Cambiar is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Short Oil Gas and Cambiar Opportunity Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambiar Opportunity and Short Oil 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 Short Oil Gas are associated (or correlated) with Cambiar Opportunity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambiar Opportunity has no effect on the direction of Short Oil i.e., Short Oil and Cambiar Opportunity go up and down completely randomly.
Pair Corralation between Short Oil and Cambiar Opportunity
Assuming the 90 days horizon Short Oil Gas is expected to under-perform the Cambiar Opportunity. In addition to that, Short Oil is 1.28 times more volatile than Cambiar Opportunity Fund. It trades about -0.31 of its total potential returns per unit of risk. Cambiar Opportunity Fund is currently generating about 0.06 per unit of volatility. If you would invest 3,016 in Cambiar Opportunity Fund on August 25, 2024 and sell it today you would earn a total of 34.00 from holding Cambiar Opportunity Fund or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Short Oil Gas vs. Cambiar Opportunity Fund
Performance |
| Timeline |
| Short Oil Gas |
| Cambiar Opportunity |
Short Oil and Cambiar Opportunity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Short Oil and Cambiar Opportunity
The main advantage of trading using opposite Short Oil and Cambiar Opportunity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Short Oil position performs unexpectedly, Cambiar Opportunity 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 Opportunity will offset losses from the drop in Cambiar Opportunity's long position.| Short Oil vs. Legg Mason Partners | Short Oil vs. Usaa Mutual Funds | Short Oil vs. Dreyfus Institutional Reserves | Short Oil vs. Chestnut Street Exchange |
| Cambiar Opportunity vs. Short Oil Gas | Cambiar Opportunity vs. Energy Basic Materials | Cambiar Opportunity vs. Gmo Resources | Cambiar Opportunity vs. Clearbridge Energy Mlp |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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