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
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chartwell and Eagle is 0.94. 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 1.28 times more return on investment than Eagle Mid. However, Chartwell Small is 1.28 times more volatile than Eagle Mid Cap. It trades about 0.29 of its potential returns per unit of risk. Eagle Mid Cap is currently generating about 0.34 per unit of risk. If you would invest 2,102 in Chartwell Small Cap on August 28, 2024 and sell it today you would earn a total of 221.00 from holding Chartwell Small Cap or generate 10.51% 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. Chartwell Short Duration | Chartwell Small vs. Carillon Chartwell Short | Chartwell Small vs. Chartwell Short Duration | Chartwell Small vs. Carillon Chartwell Short |
| Eagle Mid vs. Aqr Large Cap | Eagle Mid vs. Touchstone Large Cap | Eagle Mid vs. Rational Strategic Allocation | Eagle Mid vs. Goldman Sachs Large |
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.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |