Correlation Between BlackRock Core and Cambria Global
Can any of the company-specific risk be diversified away by investing in both BlackRock Core and Cambria Global 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 BlackRock Core and Cambria Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BlackRock Core Bond and Cambria Global Asset, you can compare the effects of market volatilities on BlackRock Core and Cambria Global 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 BlackRock Core with a short position of Cambria Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock Core and Cambria Global.
Diversification Opportunities for BlackRock Core and Cambria Global
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BlackRock and Cambria is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock Core Bond and Cambria Global Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambria Global Asset and BlackRock Core 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 BlackRock Core Bond are associated (or correlated) with Cambria Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambria Global Asset has no effect on the direction of BlackRock Core i.e., BlackRock Core and Cambria Global go up and down completely randomly.
Pair Corralation between BlackRock Core and Cambria Global
Considering the 90-day investment horizon BlackRock Core Bond is expected to under-perform the Cambria Global. But the etf apears to be less risky and, when comparing its historical volatility, BlackRock Core Bond is 1.32 times less risky than Cambria Global. The etf trades about -0.23 of its potential returns per unit of risk. The Cambria Global Asset is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 2,873 in Cambria Global Asset on January 26, 2024 and sell it today you would lose (21.30) from holding Cambria Global Asset or give up 0.74% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
BlackRock Core Bond vs. Cambria Global Asset
Performance |
Timeline |
BlackRock Core Bond |
Cambria Global Asset |
BlackRock Core and Cambria Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BlackRock Core and Cambria Global
The main advantage of trading using opposite BlackRock Core and Cambria Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlackRock Core position performs unexpectedly, Cambria Global 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 Global will offset losses from the drop in Cambria Global's long position.BlackRock Core vs. Franklin Templeton Limited | BlackRock Core vs. Western Asset Global | BlackRock Core vs. Millerhoward High Income | BlackRock Core vs. Brandywineglobal Globalome Opportunities |
Cambria Global vs. iShares Core Growth | Cambria Global vs. iShares Core Moderate | Cambria Global vs. iShares Core Conservative | Cambria Global vs. iShares Core Total |
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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