Correlation Between Eagle Growth and Carillon Chartwell
Can any of the company-specific risk be diversified away by investing in both Eagle Growth and Carillon Chartwell 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 Eagle Growth and Carillon Chartwell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Growth Income and Carillon Chartwell Small, you can compare the effects of market volatilities on Eagle Growth and Carillon Chartwell 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 Eagle Growth with a short position of Carillon Chartwell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Growth and Carillon Chartwell.
Diversification Opportunities for Eagle Growth and Carillon Chartwell
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eagle and Carillon is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Growth Income and Carillon Chartwell Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carillon Chartwell Small and Eagle Growth 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 Eagle Growth Income are associated (or correlated) with Carillon Chartwell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carillon Chartwell Small has no effect on the direction of Eagle Growth i.e., Eagle Growth and Carillon Chartwell go up and down completely randomly.
Pair Corralation between Eagle Growth and Carillon Chartwell
Assuming the 90 days horizon Eagle Growth Income is expected to generate 0.8 times more return on investment than Carillon Chartwell. However, Eagle Growth Income is 1.25 times less risky than Carillon Chartwell. It trades about 0.27 of its potential returns per unit of risk. Carillon Chartwell Small is currently generating about 0.07 per unit of risk. If you would invest 1,911 in Eagle Growth Income on November 1, 2024 and sell it today you would earn a total of 80.00 from holding Eagle Growth Income or generate 4.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.0% |
| Values | Daily Returns |
Eagle Growth Income vs. Carillon Chartwell Small
Performance |
| Timeline |
| Eagle Growth Income |
| Carillon Chartwell Small |
Eagle Growth and Carillon Chartwell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Growth and Carillon Chartwell
The main advantage of trading using opposite Eagle Growth and Carillon Chartwell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Growth position performs unexpectedly, Carillon Chartwell 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 Carillon Chartwell will offset losses from the drop in Carillon Chartwell's long position.| Eagle Growth vs. Needham Aggressive Growth | Eagle Growth vs. Mesirow Financial High | Eagle Growth vs. Millerhoward High Income | Eagle Growth vs. Barings High Yield |
| Carillon Chartwell vs. Chartwell Short Duration | Carillon Chartwell vs. Carillon Chartwell Short | Carillon Chartwell vs. Chartwell Short Duration | Carillon Chartwell vs. Carillon Chartwell Short |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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