Correlation Between GM and Carillon Chartwell
Can any of the company-specific risk be diversified away by investing in both GM 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 GM and Carillon Chartwell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Carillon Chartwell Small, you can compare the effects of market volatilities on GM 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 GM with a short position of Carillon Chartwell. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Carillon Chartwell.
Diversification Opportunities for GM and Carillon Chartwell
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GM and Carillon is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding General Motors 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 GM 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 General Motors 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 GM i.e., GM and Carillon Chartwell go up and down completely randomly.
Pair Corralation between GM and Carillon Chartwell
Allowing for the 90-day total investment horizon General Motors is expected to generate 1.63 times more return on investment than Carillon Chartwell. However, GM is 1.63 times more volatile than Carillon Chartwell Small. It trades about 0.18 of its potential returns per unit of risk. Carillon Chartwell Small is currently generating about 0.1 per unit of risk. If you would invest 5,820 in General Motors on September 6, 2025 and sell it today you would earn a total of 1,709 from holding General Motors or generate 29.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. Carillon Chartwell Small
Performance |
| Timeline |
| General Motors |
| Carillon Chartwell Small |
GM and Carillon Chartwell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Carillon Chartwell
The main advantage of trading using opposite GM and Carillon Chartwell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM 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.| GM vs. Columbia Sportswear | GM vs. SIGNA Sports United | GM vs. Playtika Holding Corp | GM vs. Osisko Metals Incorporated |
| Carillon Chartwell vs. Manning Napier Diversified | Carillon Chartwell vs. Eaton Vance Diversified | Carillon Chartwell vs. Invesco Diversified Dividend | Carillon Chartwell vs. Elfun Diversified Fund |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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