Correlation Between Cambria Global and UBS ETRACS
Can any of the company-specific risk be diversified away by investing in both Cambria Global and UBS ETRACS 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 Global and UBS ETRACS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cambria Global Momentum and UBS ETRACS , you can compare the effects of market volatilities on Cambria Global and UBS ETRACS 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 Global with a short position of UBS ETRACS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambria Global and UBS ETRACS.
Diversification Opportunities for Cambria Global and UBS ETRACS
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cambria and UBS is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Cambria Global Momentum and UBS ETRACS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS ETRACS and Cambria Global 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 Global Momentum are associated (or correlated) with UBS ETRACS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS ETRACS has no effect on the direction of Cambria Global i.e., Cambria Global and UBS ETRACS go up and down completely randomly.
Pair Corralation between Cambria Global and UBS ETRACS
Given the investment horizon of 90 days Cambria Global is expected to generate 4.01 times less return on investment than UBS ETRACS. But when comparing it to its historical volatility, Cambria Global Momentum is 4.21 times less risky than UBS ETRACS. It trades about 0.11 of its potential returns per unit of risk. UBS ETRACS is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,722 in UBS ETRACS on January 26, 2024 and sell it today you would earn a total of 746.20 from holding UBS ETRACS or generate 43.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cambria Global Momentum vs. UBS ETRACS
Performance |
| Timeline |
| Cambria Global Momentum |
| UBS ETRACS |
Cambria Global and UBS ETRACS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambria Global and UBS ETRACS
The main advantage of trading using opposite Cambria Global and UBS ETRACS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambria Global position performs unexpectedly, UBS ETRACS 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 UBS ETRACS will offset losses from the drop in UBS ETRACS's long position.| Cambria Global vs. Cambria Global Asset | Cambria Global vs. Cambria Global Value | Cambria Global vs. Cambria Foreign Shareholder | Cambria Global 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| 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 | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position 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 | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |