Correlation Between Chartwell Short and Eagle Mid
Can any of the company-specific risk be diversified away by investing in both Chartwell Short and Eagle Mid 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 Chartwell Short and Eagle Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chartwell Short Duration and Eagle Mid Cap, you can compare the effects of market volatilities on Chartwell Short and Eagle Mid 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 Chartwell Short with a short position of Eagle Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chartwell Short and Eagle Mid.
Diversification Opportunities for Chartwell Short and Eagle Mid
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chartwell and Eagle is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Chartwell Short Duration and Eagle Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Mid Cap and Chartwell Short 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 Chartwell Short Duration are associated (or correlated) with Eagle Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Mid Cap has no effect on the direction of Chartwell Short i.e., Chartwell Short and Eagle Mid go up and down completely randomly.
Pair Corralation between Chartwell Short and Eagle Mid
Assuming the 90 days horizon Chartwell Short is expected to generate 18.39 times less return on investment than Eagle Mid. But when comparing it to its historical volatility, Chartwell Short Duration is 11.67 times less risky than Eagle Mid. It trades about 0.21 of its potential returns per unit of risk. Eagle Mid Cap is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 5,535 in Eagle Mid Cap on August 31, 2024 and sell it today you would earn a total of 550.00 from holding Eagle Mid Cap or generate 9.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chartwell Short Duration vs. Eagle Mid Cap
Performance |
| Timeline |
| Chartwell Short Duration |
| Eagle Mid Cap |
Chartwell Short and Eagle Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chartwell Short and Eagle Mid
The main advantage of trading using opposite Chartwell Short and Eagle Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chartwell Short position performs unexpectedly, Eagle Mid 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 Eagle Mid will offset losses from the drop in Eagle Mid's long position.| Chartwell Short vs. Kinetics Small Cap | Chartwell Short vs. Baird Smallmid Cap | Chartwell Short vs. Chartwell Small Cap | Chartwell Short vs. Champlain Small |
| Eagle Mid vs. Fidelity Sai Convertible | Eagle Mid vs. Allianzgi Convertible Income | Eagle Mid vs. Harbor Vertible Securities | Eagle Mid vs. Virtus Convertible |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |