Correlation Between Cambria Value and Exchange Traded
Can any of the company-specific risk be diversified away by investing in both Cambria Value and Exchange Traded 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 Value and Exchange Traded into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cambria Value and and Exchange Traded Concepts, you can compare the effects of market volatilities on Cambria Value and Exchange Traded 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 Value with a short position of Exchange Traded. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambria Value and Exchange Traded.
Diversification Opportunities for Cambria Value and Exchange Traded
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cambria and Exchange is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Cambria Value and and Exchange Traded Concepts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exchange Traded Concepts and Cambria Value 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 Value and are associated (or correlated) with Exchange Traded. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exchange Traded Concepts has no effect on the direction of Cambria Value i.e., Cambria Value and Exchange Traded go up and down completely randomly.
Pair Corralation between Cambria Value and Exchange Traded
If you would invest 2,966 in Cambria Value and on September 1, 2024 and sell it today you would earn a total of 260.00 from holding Cambria Value and or generate 8.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Cambria Value and vs. Exchange Traded Concepts
Performance |
| Timeline |
| Cambria Value |
| Exchange Traded Concepts |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cambria Value and Exchange Traded Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambria Value and Exchange Traded
The main advantage of trading using opposite Cambria Value and Exchange Traded positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambria Value position performs unexpectedly, Exchange Traded 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 Exchange Traded will offset losses from the drop in Exchange Traded's long position.| Cambria Value vs. Cambria Global Momentum | Cambria Value vs. Cambria Emerging Shareholder | Cambria Value vs. Cambria Shareholder Yield | Cambria Value vs. Cambria Foreign Shareholder |
| Exchange Traded vs. Cambria Global Asset | Exchange Traded vs. Cambria Global Value | Exchange Traded vs. Cambria Foreign Shareholder | Exchange Traded vs. Cambria Value and |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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