Correlation Between Carillon Chartwell and Western Asset
Can any of the company-specific risk be diversified away by investing in both Carillon Chartwell and Western Asset 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 Carillon Chartwell and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carillon Chartwell Real and Western Asset High, you can compare the effects of market volatilities on Carillon Chartwell and Western Asset 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 Carillon Chartwell with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carillon Chartwell and Western Asset.
Diversification Opportunities for Carillon Chartwell and Western Asset
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Carillon and Western is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Carillon Chartwell Real and Western Asset High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset High and Carillon Chartwell 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 Carillon Chartwell Real are associated (or correlated) with Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset High has no effect on the direction of Carillon Chartwell i.e., Carillon Chartwell and Western Asset go up and down completely randomly.
Pair Corralation between Carillon Chartwell and Western Asset
Assuming the 90 days horizon Carillon Chartwell Real is expected to generate 0.86 times more return on investment than Western Asset. However, Carillon Chartwell Real is 1.16 times less risky than Western Asset. It trades about 0.19 of its potential returns per unit of risk. Western Asset High is currently generating about 0.1 per unit of risk. If you would invest 1,244 in Carillon Chartwell Real on September 2, 2024 and sell it today you would earn a total of 100.00 from holding Carillon Chartwell Real or generate 8.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 30.65% |
| Values | Daily Returns |
Carillon Chartwell Real vs. Western Asset High
Performance |
| Timeline |
| Carillon Chartwell Real |
| Western Asset High |
Carillon Chartwell and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carillon Chartwell and Western Asset
The main advantage of trading using opposite Carillon Chartwell and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carillon Chartwell position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| Carillon Chartwell vs. Chartwell Short Duration | Carillon Chartwell vs. Carillon Chartwell Short | Carillon Chartwell vs. Chartwell Short Duration | Carillon Chartwell vs. Carillon Chartwell Short |
| Western Asset vs. Transamerica Emerging Markets | Western Asset vs. Pnc Emerging Markets | Western Asset vs. Locorr Market Trend | Western Asset vs. Aqr Sustainable Long Short |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |