Correlation Between Chartwell Small and Eagle Mid
Can any of the company-specific risk be diversified away by investing in both Chartwell Small 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 Small 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 Small Cap and Eagle Mid Cap, you can compare the effects of market volatilities on Chartwell Small 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 Small with a short position of Eagle Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chartwell Small and Eagle Mid.
Diversification Opportunities for Chartwell Small and Eagle Mid
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chartwell and Eagle is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Chartwell Small Cap 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 Small 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 Small Cap 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 Small i.e., Chartwell Small and Eagle Mid go up and down completely randomly.
Pair Corralation between Chartwell Small and Eagle Mid
Assuming the 90 days horizon Chartwell Small Cap is expected to generate 1.09 times more return on investment than Eagle Mid. However, Chartwell Small is 1.09 times more volatile than Eagle Mid Cap. It trades about 0.11 of its potential returns per unit of risk. Eagle Mid Cap is currently generating about 0.04 per unit of risk. If you would invest 1,148 in Chartwell Small Cap on August 24, 2024 and sell it today you would earn a total of 791.00 from holding Chartwell Small Cap or generate 68.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chartwell Small Cap vs. Eagle Mid Cap
Performance |
| Timeline |
| Chartwell Small Cap |
| Eagle Mid Cap |
Chartwell Small and Eagle Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chartwell Small and Eagle Mid
The main advantage of trading using opposite Chartwell Small and Eagle Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chartwell Small 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 Small vs. Vanguard Small Cap Growth | Chartwell Small vs. Vanguard Small Cap Growth | Chartwell Small vs. Vanguard Explorer Fund | Chartwell Small vs. Vanguard Explorer Fund |
| Eagle Mid vs. Eagle Small Cap | Eagle Mid vs. Eagle Growth Income | Eagle Mid vs. Eagle Capital Appreciation | Eagle Mid vs. Victory Sycamore Established |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |