Correlation Between Carillon Chartwell and Eagle Small
Can any of the company-specific risk be diversified away by investing in both Carillon Chartwell and Eagle Small 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 Small 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 Small Cap, you can compare the effects of market volatilities on Carillon Chartwell and Eagle Small 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 Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carillon Chartwell and Eagle Small.
Diversification Opportunities for Carillon Chartwell and Eagle Small
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Carillon and Eagle is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Carillon Chartwell Short and Eagle Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Small 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 Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Small Cap has no effect on the direction of Carillon Chartwell i.e., Carillon Chartwell and Eagle Small go up and down completely randomly.
Pair Corralation between Carillon Chartwell and Eagle Small
Assuming the 90 days horizon Carillon Chartwell is expected to generate 2.06 times less return on investment than Eagle Small. But when comparing it to its historical volatility, Carillon Chartwell Short is 12.0 times less risky than Eagle Small. It trades about 0.25 of its potential returns per unit of risk. Eagle Small Cap is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,134 in Eagle Small Cap on September 13, 2024 and sell it today you would earn a total of 536.00 from holding Eagle Small Cap or generate 25.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 32.19% |
| Values | Daily Returns |
Carillon Chartwell Short vs. Eagle Small Cap
Performance |
| Timeline |
| Carillon Chartwell Short |
| Eagle Small Cap |
Carillon Chartwell and Eagle Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carillon Chartwell and Eagle Small
The main advantage of trading using opposite Carillon Chartwell and Eagle Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carillon Chartwell position performs unexpectedly, Eagle Small 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 Small will offset losses from the drop in Eagle Small's long position.| Carillon Chartwell vs. Chartwell Short Duration | Carillon Chartwell vs. Chartwell Short Duration | Carillon Chartwell vs. Carillon Chartwell Short | Carillon Chartwell vs. Eagle Growth Income |
| Eagle Small vs. Carillon Chartwell Short | Eagle Small vs. Chartwell Short Duration | Eagle Small vs. Carillon Chartwell Short | Eagle Small vs. Eagle Growth Income |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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