Correlation Between Chartwell Small and Dunham Large
Can any of the company-specific risk be diversified away by investing in both Chartwell Small and Dunham Large 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 Dunham Large 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 Dunham Large Cap, you can compare the effects of market volatilities on Chartwell Small and Dunham Large 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 Dunham Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chartwell Small and Dunham Large.
Diversification Opportunities for Chartwell Small and Dunham Large
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chartwell and Dunham is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Chartwell Small Cap and Dunham Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Large 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 Dunham Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Large Cap has no effect on the direction of Chartwell Small i.e., Chartwell Small and Dunham Large go up and down completely randomly.
Pair Corralation between Chartwell Small and Dunham Large
Assuming the 90 days horizon Chartwell Small Cap is expected to generate 1.67 times more return on investment than Dunham Large. However, Chartwell Small is 1.67 times more volatile than Dunham Large Cap. It trades about 0.06 of its potential returns per unit of risk. Dunham Large Cap is currently generating about 0.09 per unit of risk. If you would invest 1,800 in Chartwell Small Cap on September 12, 2024 and sell it today you would earn a total of 457.00 from holding Chartwell Small Cap or generate 25.39% 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. Dunham Large Cap
Performance |
| Timeline |
| Chartwell Small Cap |
| Dunham Large Cap |
Chartwell Small and Dunham Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chartwell Small and Dunham Large
The main advantage of trading using opposite Chartwell Small and Dunham Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chartwell Small position performs unexpectedly, Dunham Large 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 Dunham Large will offset losses from the drop in Dunham Large's long position.| Chartwell Small vs. Icon Financial Fund | Chartwell Small vs. Prudential Jennison Financial | Chartwell Small vs. Goldman Sachs Financial | Chartwell Small vs. John Hancock Financial |
| Dunham Large vs. Artisan Select Equity | Dunham Large vs. Dodge International Stock | Dunham Large vs. Sarofim Equity | Dunham Large vs. Gmo Global Equity |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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