Correlation Between Smallcap Fund and Carillon Chartwell

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

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

Diversification Opportunities for Smallcap Fund and Carillon Chartwell

0.26

Correlation Coefficient

Smallcap Fund  Carillon Chartwell

Modest diversification

The 3 months correlation between Smallcap and Carillon is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Smallcap Fund Fka 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 Smallcap Fund 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 Smallcap Fund Fka 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 Smallcap Fund i.e., Smallcap Fund and Carillon Chartwell go up and down completely randomly.

Pair Corralation between Smallcap Fund and Carillon Chartwell

Assuming the 90 days horizon Smallcap Fund Fka is expected to generate 0.93 times more return on investment than Carillon Chartwell. However, Smallcap Fund Fka is 1.08 times less risky than Carillon Chartwell. It trades about 0.08 of its potential returns per unit of risk. Carillon Chartwell Small is currently generating about 0.0 per unit of risk. If you would invest  2,822  in Smallcap Fund Fka on September 7, 2025 and sell it today you would earn a total of  158.00  from holding Smallcap Fund Fka or generate 5.6% return on investment over 90 days.

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

Smallcap Fund Fka  vs.  Carillon Chartwell Small

Smallcap Fund Fka

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Smallcap Fund Fka are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong primary indicators, Smallcap Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Carillon Chartwell Small

Risk-Adjusted Performance

Weakest

Over the last 90 days Carillon Chartwell Small has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Carillon Chartwell is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Smallcap Fund and Carillon Chartwell

The main advantage of trading using opposite Smallcap Fund and Carillon Chartwell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smallcap Fund 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 Smallcap Fund Fka 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.