Correlation Between Chartwell Small and Catalystmillburn
Can any of the company-specific risk be diversified away by investing in both Chartwell Small and Catalystmillburn 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 Catalystmillburn 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 Catalystmillburn Hedge Strategy, you can compare the effects of market volatilities on Chartwell Small and Catalystmillburn 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 Catalystmillburn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chartwell Small and Catalystmillburn.
Diversification Opportunities for Chartwell Small and Catalystmillburn
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chartwell and Catalystmillburn is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Chartwell Small Cap and Catalystmillburn Hedge Strateg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystmillburn Hedge 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 Catalystmillburn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystmillburn Hedge has no effect on the direction of Chartwell Small i.e., Chartwell Small and Catalystmillburn go up and down completely randomly.
Pair Corralation between Chartwell Small and Catalystmillburn
Assuming the 90 days horizon Chartwell Small Cap is expected to under-perform the Catalystmillburn. In addition to that, Chartwell Small is 2.73 times more volatile than Catalystmillburn Hedge Strategy. It trades about -0.03 of its total potential returns per unit of risk. Catalystmillburn Hedge Strategy is currently generating about 0.18 per unit of volatility. If you would invest 3,966 in Catalystmillburn Hedge Strategy on September 12, 2024 and sell it today you would earn a total of 46.00 from holding Catalystmillburn Hedge Strategy or generate 1.16% 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. Catalystmillburn Hedge Strateg
Performance |
| Timeline |
| Chartwell Small Cap |
| Catalystmillburn Hedge |
Chartwell Small and Catalystmillburn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chartwell Small and Catalystmillburn
The main advantage of trading using opposite Chartwell Small and Catalystmillburn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chartwell Small position performs unexpectedly, Catalystmillburn 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 Catalystmillburn will offset losses from the drop in Catalystmillburn'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 |
| Catalystmillburn vs. Great West Loomis Sayles | Catalystmillburn vs. Ab Small Cap | Catalystmillburn vs. Ab Discovery Value | Catalystmillburn vs. Vanguard Small Cap Value |
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 CEOs Directory module to screen CEOs from public companies around the world.
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