Correlation Between Cambria Shareholder and Cambria Value
Can any of the company-specific risk be diversified away by investing in both Cambria Shareholder and Cambria Value 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 Cambria Shareholder and Cambria Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cambria Shareholder Yield and Cambria Value and, you can compare the effects of market volatilities on Cambria Shareholder and Cambria Value 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 Cambria Shareholder with a short position of Cambria Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambria Shareholder and Cambria Value.
Diversification Opportunities for Cambria Shareholder and Cambria Value
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cambria and Cambria is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Cambria Shareholder Yield and Cambria Value and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambria Value and Cambria Shareholder 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 Cambria Shareholder Yield are associated (or correlated) with Cambria Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambria Value has no effect on the direction of Cambria Shareholder i.e., Cambria Shareholder and Cambria Value go up and down completely randomly.
Pair Corralation between Cambria Shareholder and Cambria Value
Given the investment horizon of 90 days Cambria Shareholder is expected to generate 2.67 times less return on investment than Cambria Value. In addition to that, Cambria Shareholder is 1.31 times more volatile than Cambria Value and. It trades about 0.01 of its total potential returns per unit of risk. Cambria Value and is currently generating about 0.05 per unit of volatility. If you would invest 2,393 in Cambria Value and on January 17, 2025 and sell it today you would earn a total of 529.00 from holding Cambria Value and or generate 22.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cambria Shareholder Yield vs. Cambria Value and
Performance |
| Timeline |
| Cambria Shareholder Yield |
| Cambria Value |
Cambria Shareholder and Cambria Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambria Shareholder and Cambria Value
The main advantage of trading using opposite Cambria Shareholder and Cambria Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambria Shareholder position performs unexpectedly, Cambria Value 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 Value will offset losses from the drop in Cambria Value's long position.| Cambria Shareholder vs. Cambria Foreign Shareholder | Cambria Shareholder vs. Invesco BuyBack Achievers | Cambria Shareholder vs. Cambria Global Value | Cambria Shareholder vs. Cambria Value and |
| Cambria Value vs. Cambria Global Momentum | Cambria Value vs. Cambria Emerging Shareholder | Cambria Value vs. Cambria Shareholder Yield | Cambria Value vs. Cambria Foreign Shareholder |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |