Correlation Between Cambiar Aggressive and Barclays ETN

Can any of the company-specific risk be diversified away by investing in both Cambiar Aggressive and Barclays ETN 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 Cambiar Aggressive and Barclays ETN into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cambiar Aggressive Value and Barclays ETN FI, you can compare the effects of market volatilities on Cambiar Aggressive and Barclays ETN 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 Cambiar Aggressive with a short position of Barclays ETN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambiar Aggressive and Barclays ETN.

Diversification Opportunities for Cambiar Aggressive and Barclays ETN

0.53

Correlation Coefficient

Cambiar Aggressive  Barclays ETN

Very weak diversification

The 3 months correlation between Cambiar and Barclays is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Cambiar Aggressive Value and Barclays ETN FI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays ETN FI and Cambiar Aggressive 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 Cambiar Aggressive Value are associated (or correlated) with Barclays ETN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays ETN FI has no effect on the direction of Cambiar Aggressive i.e., Cambiar Aggressive and Barclays ETN go up and down completely randomly.

Pair Corralation between Cambiar Aggressive and Barclays ETN

Given the investment horizon of 90 days Cambiar Aggressive is expected to generate 8.08 times less return on investment than Barclays ETN. But when comparing it to its historical volatility, Cambiar Aggressive Value is 1.01 times less risky than Barclays ETN. It trades about 0.01 of its potential returns per unit of risk. Barclays ETN FI is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  3,072  in Barclays ETN FI on July 27, 2025 and sell it today you would earn a total of  173.00  from holding Barclays ETN FI or generate 5.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Cambiar Aggressive Value  vs.  Barclays ETN FI

Cambiar Aggressive Value

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cambiar Aggressive Value are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong primary indicators, Cambiar Aggressive is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Barclays ETN FI

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Barclays ETN FI are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, Barclays ETN is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Cambiar Aggressive and Barclays ETN

The main advantage of trading using opposite Cambiar Aggressive and Barclays ETN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambiar Aggressive position performs unexpectedly, Barclays ETN 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 Barclays ETN will offset losses from the drop in Barclays ETN's long position.

The idea behind Cambiar Aggressive Value and Barclays ETN FI pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.