Correlation Between Global Equity and Channing Intrinsic

Can any of the company-specific risk be diversified away by investing in both Global Equity and Channing Intrinsic 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 Global Equity and Channing Intrinsic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Global Equity Fund and Channing Intrinsic Value, you can compare the effects of market volatilities on Global Equity and Channing Intrinsic 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 Global Equity with a short position of Channing Intrinsic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Equity and Channing Intrinsic.

Diversification Opportunities for Global Equity and Channing Intrinsic

0.93

Correlation Coefficient

Global Equity  Channing Intrinsic

Almost no diversification

The 3 months correlation between Global and Channing is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Global Equity Fund and Channing Intrinsic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Channing Intrinsic Value and Global Equity 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 Global Equity Fund are associated (or correlated) with Channing Intrinsic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Channing Intrinsic Value has no effect on the direction of Global Equity i.e., Global Equity and Channing Intrinsic go up and down completely randomly.

Pair Corralation between Global Equity and Channing Intrinsic

Assuming the 90 days horizon Global Equity is expected to generate 1.36 times less return on investment than Channing Intrinsic. But when comparing it to its historical volatility, Global Equity Fund is 1.78 times less risky than Channing Intrinsic. It trades about 0.21 of its potential returns per unit of risk. Channing Intrinsic Value is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  943.00  in Channing Intrinsic Value on May 4, 2025 and sell it today you would earn a total of  121.00  from holding Channing Intrinsic Value or generate 12.83% return on investment over 90 days.

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

Global Equity Fund  vs.  Channing Intrinsic Value

Global Equity

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Global Equity Fund are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Global Equity may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Channing Intrinsic Value

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Channing Intrinsic Value are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, Channing Intrinsic may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Global Equity and Channing Intrinsic

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

The idea behind Global Equity Fund and Channing Intrinsic Value 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.