Correlation Between Eagle Mid and Carillon Chartwell
Can any of the company-specific risk be diversified away by investing in both Eagle Mid 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 Mid 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 Mid Cap and Carillon Chartwell Small, you can compare the effects of market volatilities on Eagle Mid 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 Mid with a short position of Carillon Chartwell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Mid and Carillon Chartwell.
Diversification Opportunities for Eagle Mid and Carillon Chartwell
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between EAGLE and Carillon is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Mid Cap 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 Mid 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 Mid Cap 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 Mid i.e., Eagle Mid and Carillon Chartwell go up and down completely randomly.
Pair Corralation between Eagle Mid and Carillon Chartwell
Assuming the 90 days horizon Eagle Mid is expected to generate 1.39 times less return on investment than Carillon Chartwell. But when comparing it to its historical volatility, Eagle Mid Cap is 1.17 times less risky than Carillon Chartwell. It trades about 0.1 of its potential returns per unit of risk. Carillon Chartwell Small is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,907 in Carillon Chartwell Small on August 28, 2024 and sell it today you would earn a total of 411.00 from holding Carillon Chartwell Small or generate 21.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 71.15% |
| Values | Daily Returns |
Eagle Mid Cap vs. Carillon Chartwell Small
Performance |
| Timeline |
| Eagle Mid Cap |
| Carillon Chartwell Small |
Eagle Mid and Carillon Chartwell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Mid and Carillon Chartwell
The main advantage of trading using opposite Eagle Mid and Carillon Chartwell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Mid 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 Mid vs. Mfs Mid Cap | Eagle Mid vs. Janus Triton Fund | Eagle Mid vs. Europacific Growth Fund | Eagle Mid vs. Mfs International Value |
| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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