Correlation Between Chartwell Small and Nationwide Small
Can any of the company-specific risk be diversified away by investing in both Chartwell Small and Nationwide 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 Chartwell Small and Nationwide Small 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 Nationwide Small Cap, you can compare the effects of market volatilities on Chartwell Small and Nationwide 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 Chartwell Small with a short position of Nationwide Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chartwell Small and Nationwide Small.
Diversification Opportunities for Chartwell Small and Nationwide Small
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chartwell and NATIONWIDE is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Chartwell Small Cap and Nationwide Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Small 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 Nationwide Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Small Cap has no effect on the direction of Chartwell Small i.e., Chartwell Small and Nationwide Small go up and down completely randomly.
Pair Corralation between Chartwell Small and Nationwide Small
Assuming the 90 days horizon Chartwell Small is expected to generate 1.03 times less return on investment than Nationwide Small. But when comparing it to its historical volatility, Chartwell Small Cap is 1.1 times less risky than Nationwide Small. It trades about 0.06 of its potential returns per unit of risk. Nationwide Small Cap is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 954.00 in Nationwide Small Cap on August 24, 2024 and sell it today you would earn a total of 287.00 from holding Nationwide Small Cap or generate 30.08% 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. Nationwide Small Cap
Performance |
| Timeline |
| Chartwell Small Cap |
| Nationwide Small Cap |
Chartwell Small and Nationwide Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chartwell Small and Nationwide Small
The main advantage of trading using opposite Chartwell Small and Nationwide Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chartwell Small position performs unexpectedly, Nationwide 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 Nationwide Small will offset losses from the drop in Nationwide Small's long position.| Chartwell Small vs. Lebenthal Lisanti Small | Chartwell Small vs. Hodges Small Cap | Chartwell Small vs. Oberweis Small Cap Opportunities | Chartwell Small vs. Aegis Value Fund |
| Nationwide Small vs. Vanguard Small Cap Index | Nationwide Small vs. Vanguard Small Cap Index | Nationwide Small vs. Vanguard Small Cap Index | Nationwide Small vs. Fidelity Small Cap |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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