Correlation Between Fidelity and Cambria Tail
Can any of the company-specific risk be diversified away by investing in both Fidelity and Cambria Tail 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 Fidelity and Cambria Tail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity and Cambria Tail Risk, you can compare the effects of market volatilities on Fidelity and Cambria Tail 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 Fidelity with a short position of Cambria Tail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity and Cambria Tail.
Diversification Opportunities for Fidelity and Cambria Tail
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidelity and Cambria is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity and Cambria Tail Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambria Tail Risk and Fidelity 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 Fidelity are associated (or correlated) with Cambria Tail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambria Tail Risk has no effect on the direction of Fidelity i.e., Fidelity and Cambria Tail go up and down completely randomly.
Pair Corralation between Fidelity and Cambria Tail
Given the investment horizon of 90 days Fidelity is expected to generate 1.9 times more return on investment than Cambria Tail. However, Fidelity is 1.9 times more volatile than Cambria Tail Risk. It trades about 0.07 of its potential returns per unit of risk. Cambria Tail Risk is currently generating about -0.06 per unit of risk. If you would invest 3,026 in Fidelity on October 9, 2025 and sell it today you would earn a total of 63.00 from holding Fidelity or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 52.46% |
| Values | Daily Returns |
Fidelity vs. Cambria Tail Risk
Performance |
| Timeline |
| Fidelity |
Risk-Adjusted Performance
Mild
Weak | Strong |
| Cambria Tail Risk |
Fidelity and Cambria Tail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity and Cambria Tail
The main advantage of trading using opposite Fidelity and Cambria Tail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity position performs unexpectedly, Cambria Tail 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 Tail will offset losses from the drop in Cambria Tail's long position.| Fidelity vs. Brendan Wood TopGun | Fidelity vs. Horizon Kinetics Medical | Fidelity vs. First Trust Latin | Fidelity vs. Xtrackers SP 500 |
| Cambria Tail vs. Simplify Equity PLUS | Cambria Tail vs. AIM ETF Products | Cambria Tail vs. Simplify Equity PLUS | Cambria Tail vs. FT Cboe Vest |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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