Correlation Between Carillon Chartwell and Kinetics Market

Can any of the company-specific risk be diversified away by investing in both Carillon Chartwell and Kinetics Market 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 Carillon Chartwell and Kinetics Market into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Carillon Chartwell Small and Kinetics Market Opportunities, you can compare the effects of market volatilities on Carillon Chartwell and Kinetics Market 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 Carillon Chartwell with a short position of Kinetics Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carillon Chartwell and Kinetics Market.

Diversification Opportunities for Carillon Chartwell and Kinetics Market

0.15

Correlation Coefficient

Carillon Chartwell  Kinetics Market

Average diversification

The 3 months correlation between Carillon and Kinetics is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Carillon Chartwell Small and Kinetics Market Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Market Oppo and Carillon Chartwell 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 Carillon Chartwell Small are associated (or correlated) with Kinetics Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetics Market Oppo has no effect on the direction of Carillon Chartwell i.e., Carillon Chartwell and Kinetics Market go up and down completely randomly.

Pair Corralation between Carillon Chartwell and Kinetics Market

Assuming the 90 days horizon Carillon Chartwell Small is expected to under-perform the Kinetics Market. In addition to that, Carillon Chartwell is 4.22 times more volatile than Kinetics Market Opportunities. It trades about -0.21 of its total potential returns per unit of risk. Kinetics Market Opportunities is currently generating about 0.52 per unit of volatility. If you would invest  7,214  in Kinetics Market Opportunities on October 23, 2024 and sell it today you would earn a total of  1,180  from holding Kinetics Market Opportunities or generate 16.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Carillon Chartwell Small  vs.  Kinetics Market Opportunities

Carillon Chartwell Small

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Carillon Chartwell Small has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's technical indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Kinetics Market Oppo

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kinetics Market Opportunities are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Kinetics Market showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Carillon Chartwell and Kinetics Market

The main advantage of trading using opposite Carillon Chartwell and Kinetics Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carillon Chartwell position performs unexpectedly, Kinetics Market 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 Kinetics Market will offset losses from the drop in Kinetics Market's long position.

The idea behind Carillon Chartwell Small and Kinetics Market Opportunities 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.

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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.