Correlation Between Chartwell Small and American Funds
Can any of the company-specific risk be diversified away by investing in both Chartwell Small and American Funds 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 American Funds 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 American Funds Conservative, you can compare the effects of market volatilities on Chartwell Small and American Funds 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 American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chartwell Small and American Funds.
Diversification Opportunities for Chartwell Small and American Funds
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chartwell and American is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Chartwell Small Cap and American Funds Conservative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds Conse 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 American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds Conse has no effect on the direction of Chartwell Small i.e., Chartwell Small and American Funds go up and down completely randomly.
Pair Corralation between Chartwell Small and American Funds
Assuming the 90 days horizon Chartwell Small is expected to generate 1.36 times less return on investment than American Funds. In addition to that, Chartwell Small is 3.13 times more volatile than American Funds Conservative. It trades about 0.02 of its total potential returns per unit of risk. American Funds Conservative is currently generating about 0.09 per unit of volatility. If you would invest 1,339 in American Funds Conservative on May 29, 2025 and sell it today you would earn a total of 83.00 from holding American Funds Conservative or generate 6.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.2% |
| Values | Daily Returns |
Chartwell Small Cap vs. American Funds Conservative
Performance |
| Timeline |
| Chartwell Small Cap |
| American Funds Conse |
Chartwell Small and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chartwell Small and American Funds
The main advantage of trading using opposite Chartwell Small and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chartwell Small position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' long position.| Chartwell Small vs. T Rowe Price | Chartwell Small vs. Artisan High Income | Chartwell Small vs. Intermediate Term Bond Fund | Chartwell Small vs. Siit Emerging Markets |
| American Funds vs. Sa Emerging Markets | American Funds vs. Ep Emerging Markets | American Funds vs. Fidelity New Markets | American Funds vs. Delaware Limited Term Diversified |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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