Correlation Between Tiaa-cref Small-cap and Chartwell Small
Can any of the company-specific risk be diversified away by investing in both Tiaa-cref Small-cap and Chartwell Small 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 Tiaa-cref Small-cap and Chartwell Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tiaa Cref Small Cap Equity and Chartwell Small Cap, you can compare the effects of market volatilities on Tiaa-cref Small-cap and Chartwell Small 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 Tiaa-cref Small-cap with a short position of Chartwell Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa-cref Small-cap and Chartwell Small.
Diversification Opportunities for Tiaa-cref Small-cap and Chartwell Small
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tiaa-cref and Chartwell is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Small Cap Equity and Chartwell Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chartwell Small Cap and Tiaa-cref Small-cap 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 Tiaa Cref Small Cap Equity are associated (or correlated) with Chartwell Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chartwell Small Cap has no effect on the direction of Tiaa-cref Small-cap i.e., Tiaa-cref Small-cap and Chartwell Small go up and down completely randomly.
Pair Corralation between Tiaa-cref Small-cap and Chartwell Small
Assuming the 90 days horizon Tiaa Cref Small Cap Equity is expected to generate 1.01 times more return on investment than Chartwell Small. However, Tiaa-cref Small-cap is 1.01 times more volatile than Chartwell Small Cap. It trades about 0.18 of its potential returns per unit of risk. Chartwell Small Cap is currently generating about 0.15 per unit of risk. If you would invest 1,810 in Tiaa Cref Small Cap Equity on June 10, 2025 and sell it today you would earn a total of 225.00 from holding Tiaa Cref Small Cap Equity or generate 12.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tiaa Cref Small Cap Equity vs. Chartwell Small Cap
Performance |
| Timeline |
| Tiaa-cref Small-cap |
| Chartwell Small Cap |
Tiaa-cref Small-cap and Chartwell Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tiaa-cref Small-cap and Chartwell Small
The main advantage of trading using opposite Tiaa-cref Small-cap and Chartwell Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa-cref Small-cap position performs unexpectedly, Chartwell Small 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 Chartwell Small will offset losses from the drop in Chartwell Small's long position.The idea behind Tiaa Cref Small Cap Equity and Chartwell Small Cap pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Chartwell Small vs. Chartwell Short Duration | Chartwell Small vs. Carillon Chartwell Short | Chartwell Small vs. Chartwell Short Duration | Chartwell Small 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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