Correlation Between Tidal Trust and Cambria Micro
Can any of the company-specific risk be diversified away by investing in both Tidal Trust and Cambria Micro 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 Tidal Trust and Cambria Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tidal Trust II and Cambria Micro And, you can compare the effects of market volatilities on Tidal Trust and Cambria Micro 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 Tidal Trust with a short position of Cambria Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tidal Trust and Cambria Micro.
Diversification Opportunities for Tidal Trust and Cambria Micro
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tidal and Cambria is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Tidal Trust II and Cambria Micro And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambria Micro And and Tidal Trust 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 Tidal Trust II are associated (or correlated) with Cambria Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambria Micro And has no effect on the direction of Tidal Trust i.e., Tidal Trust and Cambria Micro go up and down completely randomly.
Pair Corralation between Tidal Trust and Cambria Micro
Given the investment horizon of 90 days Tidal Trust II is expected to generate 7.45 times more return on investment than Cambria Micro. However, Tidal Trust is 7.45 times more volatile than Cambria Micro And. It trades about 0.09 of its potential returns per unit of risk. Cambria Micro And is currently generating about 0.06 per unit of risk. If you would invest 1,000.00 in Tidal Trust II on August 29, 2024 and sell it today you would earn a total of 1,075 from holding Tidal Trust II or generate 107.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 60.96% |
| Values | Daily Returns |
Tidal Trust II vs. Cambria Micro And
Performance |
| Timeline |
| Tidal Trust II |
| Cambria Micro And |
Tidal Trust and Cambria Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tidal Trust and Cambria Micro
The main advantage of trading using opposite Tidal Trust and Cambria Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tidal Trust position performs unexpectedly, Cambria Micro 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 Micro will offset losses from the drop in Cambria Micro's long position.| Tidal Trust vs. Freedom Day Dividend | Tidal Trust vs. Franklin Templeton ETF | Tidal Trust vs. iShares MSCI China | Tidal Trust vs. Tidal Trust II |
| Cambria Micro vs. FT Vest Equity | Cambria Micro vs. Northern Lights | Cambria Micro vs. Dimensional International High | Cambria Micro vs. First Trust Exchange Traded |
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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