Correlation Between Chartwell Small and Financial Industries
Can any of the company-specific risk be diversified away by investing in both Chartwell Small and Financial Industries 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 Financial Industries 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 Financial Industries Fund, you can compare the effects of market volatilities on Chartwell Small and Financial Industries 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 Financial Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chartwell Small and Financial Industries.
Diversification Opportunities for Chartwell Small and Financial Industries
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CHARTWELL and Financial is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Chartwell Small Cap and Financial Industries Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Financial Industries 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 Financial Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Financial Industries has no effect on the direction of Chartwell Small i.e., Chartwell Small and Financial Industries go up and down completely randomly.
Pair Corralation between Chartwell Small and Financial Industries
Assuming the 90 days horizon Chartwell Small is expected to generate 1.22 times less return on investment than Financial Industries. In addition to that, Chartwell Small is 1.41 times more volatile than Financial Industries Fund. It trades about 0.13 of its total potential returns per unit of risk. Financial Industries Fund is currently generating about 0.22 per unit of volatility. If you would invest 1,689 in Financial Industries Fund on April 9, 2025 and sell it today you would earn a total of 256.00 from holding Financial Industries Fund or generate 15.16% 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. Financial Industries Fund
Performance |
| Timeline |
| Chartwell Small Cap |
| Financial Industries |
Chartwell Small and Financial Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chartwell Small and Financial Industries
The main advantage of trading using opposite Chartwell Small and Financial Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chartwell Small position performs unexpectedly, Financial Industries 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 Financial Industries will offset losses from the drop in Financial Industries' long position.| Chartwell Small vs. Mainstay Vertible Fund | Chartwell Small vs. Allianzgi Convertible Income | Chartwell Small vs. Invesco Vertible Securities | Chartwell Small vs. Advent Claymore Convertible |
| Financial Industries vs. Alliancebernstein Global Highome | Financial Industries vs. Calamos Global Growth | Financial Industries vs. Barings Global Floating | Financial Industries vs. Calvert Global Energy |
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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