Correlation Between Chartwell Small and Aristotle Growth
Can any of the company-specific risk be diversified away by investing in both Chartwell Small and Aristotle Growth 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 Aristotle Growth 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 Aristotle Growth Equity, you can compare the effects of market volatilities on Chartwell Small and Aristotle Growth 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 Aristotle Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chartwell Small and Aristotle Growth.
Diversification Opportunities for Chartwell Small and Aristotle Growth
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chartwell and Aristotle is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Chartwell Small Cap and Aristotle Growth Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aristotle Growth Equity 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 Aristotle Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aristotle Growth Equity has no effect on the direction of Chartwell Small i.e., Chartwell Small and Aristotle Growth go up and down completely randomly.
Pair Corralation between Chartwell Small and Aristotle Growth
Assuming the 90 days horizon Chartwell Small Cap is expected to generate 1.72 times more return on investment than Aristotle Growth. However, Chartwell Small is 1.72 times more volatile than Aristotle Growth Equity. It trades about 0.31 of its potential returns per unit of risk. Aristotle Growth Equity is currently generating about 0.33 per unit of risk. If you would invest 2,074 in Chartwell Small Cap on September 4, 2024 and sell it today you would earn a total of 232.00 from holding Chartwell Small Cap or generate 11.19% 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. Aristotle Growth Equity
Performance |
| Timeline |
| Chartwell Small Cap |
| Aristotle Growth Equity |
Chartwell Small and Aristotle Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chartwell Small and Aristotle Growth
The main advantage of trading using opposite Chartwell Small and Aristotle Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chartwell Small position performs unexpectedly, Aristotle Growth 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 Aristotle Growth will offset losses from the drop in Aristotle Growth's long position.| Chartwell Small vs. Chartwell Short Duration | Chartwell Small vs. Carillon Chartwell Short | Chartwell Small vs. Chartwell Short Duration | Chartwell Small vs. Carillon Chartwell Short |
| Aristotle Growth vs. Aristotle Funds Series | Aristotle Growth vs. Aristotle Funds Series | Aristotle Growth vs. Aristotle International Eq | Aristotle Growth vs. Aristotle Funds Series |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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