Correlation Between Chartwell Small and Value Fund
Can any of the company-specific risk be diversified away by investing in both Chartwell Small and Value Fund 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 Value Fund 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 Value Fund Value, you can compare the effects of market volatilities on Chartwell Small and Value Fund 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 Value Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chartwell Small and Value Fund.
Diversification Opportunities for Chartwell Small and Value Fund
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chartwell and Value is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Chartwell Small Cap and Value Fund Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Value Fund Value 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 Value Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Value Fund Value has no effect on the direction of Chartwell Small i.e., Chartwell Small and Value Fund go up and down completely randomly.
Pair Corralation between Chartwell Small and Value Fund
Assuming the 90 days horizon Chartwell Small Cap is expected to generate 1.64 times more return on investment than Value Fund. However, Chartwell Small is 1.64 times more volatile than Value Fund Value. It trades about 0.08 of its potential returns per unit of risk. Value Fund Value is currently generating about 0.12 per unit of risk. If you would invest 1,935 in Chartwell Small Cap on September 1, 2024 and sell it today you would earn a total of 366.00 from holding Chartwell Small Cap or generate 18.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.47% |
| Values | Daily Returns |
Chartwell Small Cap vs. Value Fund Value
Performance |
| Timeline |
| Chartwell Small Cap |
| Value Fund Value |
Chartwell Small and Value Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chartwell Small and Value Fund
The main advantage of trading using opposite Chartwell Small and Value Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chartwell Small position performs unexpectedly, Value Fund 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 Value Fund will offset losses from the drop in Value Fund'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 |
| Value Fund vs. Strategic Allocation Moderate | Value Fund vs. Multimanager Lifestyle Moderate | Value Fund vs. Calvert Moderate Allocation | Value Fund vs. Tiaa Cref Lifestyle Moderate |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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