Correlation Between Eagle Capital and Carillon Chartwell

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

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

Diversification Opportunities for Eagle Capital and Carillon Chartwell

0.6

Correlation Coefficient

Eagle Capital  Carillon Chartwell

Poor diversification

The 3 months correlation between Eagle and Carillon is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Capital Appreciation 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 Eagle Capital 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 Eagle Capital Appreciation 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 Eagle Capital i.e., Eagle Capital and Carillon Chartwell go up and down completely randomly.

Pair Corralation between Eagle Capital and Carillon Chartwell

Assuming the 90 days horizon Eagle Capital Appreciation is expected to generate 0.67 times more return on investment than Carillon Chartwell. However, Eagle Capital Appreciation is 1.49 times less risky than Carillon Chartwell. It trades about 0.25 of its potential returns per unit of risk. Carillon Chartwell Small is currently generating about 0.09 per unit of risk. If you would invest  5,666  in Eagle Capital Appreciation on May 4, 2025 and sell it today you would earn a total of  834.00  from holding Eagle Capital Appreciation or generate 14.72% return on investment over 90 days.

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

Eagle Capital Appreciation  vs.  Carillon Chartwell Small

Eagle Capital Apprec

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Eagle Capital Appreciation are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Eagle Capital showed solid returns over the last few months and may actually be approaching a breakup point.

Carillon Chartwell Small

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Carillon Chartwell Small are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Carillon Chartwell may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Eagle Capital and Carillon Chartwell

The main advantage of trading using opposite Eagle Capital and Carillon Chartwell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Capital 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.

The idea behind Eagle Capital Appreciation and Carillon Chartwell Small 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.