Correlation Between Carillon Chartwell and Eagle Mid
Can any of the company-specific risk be diversified away by investing in both Carillon Chartwell 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 Carillon Chartwell and Eagle Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carillon Chartwell Short and Eagle Mid Cap, you can compare the effects of market volatilities on Carillon Chartwell 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 Carillon Chartwell with a short position of Eagle Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carillon Chartwell and Eagle Mid.
Diversification Opportunities for Carillon Chartwell and Eagle Mid
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Carillon and Eagle is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Carillon Chartwell Short 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 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 Short 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 Carillon Chartwell i.e., Carillon Chartwell and Eagle Mid go up and down completely randomly.
Pair Corralation between Carillon Chartwell and Eagle Mid
Assuming the 90 days horizon Carillon Chartwell is expected to generate 21.09 times less return on investment than Eagle Mid. But when comparing it to its historical volatility, Carillon Chartwell Short is 10.27 times less risky than Eagle Mid. It trades about 0.14 of its potential returns per unit of risk. Eagle Mid Cap is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 5,130 in Eagle Mid Cap on September 2, 2024 and sell it today you would earn a total of 981.00 from holding Eagle Mid Cap or generate 19.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carillon Chartwell Short vs. Eagle Mid Cap
Performance |
| Timeline |
| Carillon Chartwell Short |
| Eagle Mid Cap |
Carillon Chartwell and Eagle Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carillon Chartwell and Eagle Mid
The main advantage of trading using opposite Carillon Chartwell and Eagle Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carillon Chartwell 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.| Carillon Chartwell vs. Oklahoma Municipal Fund | Carillon Chartwell vs. Multisector Bond Sma | Carillon Chartwell vs. Ab Impact Municipal | Carillon Chartwell vs. T Rowe Price |
| Eagle Mid vs. Towpath Technology | Eagle Mid vs. Mfs Technology Fund | Eagle Mid vs. Pgim Jennison Technology | Eagle Mid vs. Biotechnology Fund Class |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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