Correlation Between Cambria Trinity and Cambria ETF
Can any of the company-specific risk be diversified away by investing in both Cambria Trinity and Cambria ETF 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 Trinity and Cambria ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cambria Trinity ETF and Cambria ETF Trust, you can compare the effects of market volatilities on Cambria Trinity and Cambria ETF 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 Trinity with a short position of Cambria ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambria Trinity and Cambria ETF.
Diversification Opportunities for Cambria Trinity and Cambria ETF
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cambria and Cambria is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Cambria Trinity ETF and Cambria ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambria ETF Trust and Cambria Trinity 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 Trinity ETF are associated (or correlated) with Cambria ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambria ETF Trust has no effect on the direction of Cambria Trinity i.e., Cambria Trinity and Cambria ETF go up and down completely randomly.
Pair Corralation between Cambria Trinity and Cambria ETF
Given the investment horizon of 90 days Cambria Trinity ETF is expected to generate 0.55 times more return on investment than Cambria ETF. However, Cambria Trinity ETF is 1.81 times less risky than Cambria ETF. It trades about -0.07 of its potential returns per unit of risk. Cambria ETF Trust is currently generating about -0.1 per unit of risk. If you would invest 2,583 in Cambria Trinity ETF on November 28, 2024 and sell it today you would lose (16.00) from holding Cambria Trinity ETF or give up 0.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cambria Trinity ETF vs. Cambria ETF Trust
Performance |
| Timeline |
| Cambria Trinity ETF |
| Cambria ETF Trust |
Cambria Trinity and Cambria ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambria Trinity and Cambria ETF
The main advantage of trading using opposite Cambria Trinity and Cambria ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambria Trinity position performs unexpectedly, Cambria ETF 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 ETF will offset losses from the drop in Cambria ETF's long position.| Cambria Trinity vs. Cambria Global Asset | Cambria Trinity vs. Cambria Global Momentum | Cambria Trinity vs. Cambria Emerging Shareholder | Cambria Trinity vs. Cambria Value and |
| Cambria ETF vs. Cambria Emerging Shareholder | Cambria ETF vs. Cambria Trinity ETF | Cambria ETF vs. Cambria Global Value | Cambria ETF 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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