Correlation Between Bbh Intermediate and Scout Mid
Can any of the company-specific risk be diversified away by investing in both Bbh Intermediate and Scout Mid 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 Bbh Intermediate and Scout Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bbh Intermediate Municipal and Scout Mid Cap, you can compare the effects of market volatilities on Bbh Intermediate and Scout Mid 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 Bbh Intermediate with a short position of Scout Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bbh Intermediate and Scout Mid.
Diversification Opportunities for Bbh Intermediate and Scout Mid
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bbh and Scout is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Intermediate Municipal and Scout Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scout Mid Cap and Bbh Intermediate 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 Bbh Intermediate Municipal are associated (or correlated) with Scout Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scout Mid Cap has no effect on the direction of Bbh Intermediate i.e., Bbh Intermediate and Scout Mid go up and down completely randomly.
Pair Corralation between Bbh Intermediate and Scout Mid
Assuming the 90 days horizon Bbh Intermediate is expected to generate 10.61 times less return on investment than Scout Mid. But when comparing it to its historical volatility, Bbh Intermediate Municipal is 3.87 times less risky than Scout Mid. It trades about 0.17 of its potential returns per unit of risk. Scout Mid Cap is currently generating about 0.47 of returns per unit of risk over similar time horizon. If you would invest 2,603 in Scout Mid Cap on September 4, 2024 and sell it today you would earn a total of 251.00 from holding Scout Mid Cap or generate 9.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bbh Intermediate Municipal vs. Scout Mid Cap
Performance |
| Timeline |
| Bbh Intermediate Mun |
| Scout Mid Cap |
Bbh Intermediate and Scout Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bbh Intermediate and Scout Mid
The main advantage of trading using opposite Bbh Intermediate and Scout Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bbh Intermediate position performs unexpectedly, Scout Mid 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 Scout Mid will offset losses from the drop in Scout Mid's long position.| Bbh Intermediate vs. Bbh Limited Duration | Bbh Intermediate vs. Bbh Limited Duration | Bbh Intermediate vs. Bbh Partner Fund | Bbh Intermediate vs. Bbh Intermediate Municipal |
| Scout Mid vs. John Hancock Financial | Scout Mid vs. Goldman Sachs Financial | Scout Mid vs. Mesirow Financial Small | Scout Mid vs. 1919 Financial Services |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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