Correlation Between Carillon Chartwell and Scout Core
Can any of the company-specific risk be diversified away by investing in both Carillon Chartwell and Scout Core 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 Scout Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carillon Chartwell Short and Scout E Bond, you can compare the effects of market volatilities on Carillon Chartwell and Scout Core 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 Scout Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carillon Chartwell and Scout Core.
Diversification Opportunities for Carillon Chartwell and Scout Core
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Carillon and Scout is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Carillon Chartwell Short and Scout E Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scout E Bond 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 Short are associated (or correlated) with Scout Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scout E Bond has no effect on the direction of Carillon Chartwell i.e., Carillon Chartwell and Scout Core go up and down completely randomly.
Pair Corralation between Carillon Chartwell and Scout Core
Assuming the 90 days horizon Carillon Chartwell is expected to generate 2.99 times less return on investment than Scout Core. But when comparing it to its historical volatility, Carillon Chartwell Short is 4.09 times less risky than Scout Core. It trades about 0.19 of its potential returns per unit of risk. Scout E Bond is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,072 in Scout E Bond on September 1, 2024 and sell it today you would earn a total of 14.00 from holding Scout E Bond or generate 1.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Carillon Chartwell Short vs. Scout E Bond
Performance |
| Timeline |
| Carillon Chartwell Short |
| Scout E Bond |
Carillon Chartwell and Scout Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carillon Chartwell and Scout Core
The main advantage of trading using opposite Carillon Chartwell and Scout Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carillon Chartwell position performs unexpectedly, Scout Core 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 Core will offset losses from the drop in Scout Core's long position.| Carillon Chartwell vs. Chartwell Short Duration | Carillon Chartwell vs. Chartwell Short Duration | Carillon Chartwell vs. Carillon Chartwell Short | Carillon Chartwell vs. Eagle Growth Income |
| Scout Core vs. Carillon Chartwell Short | Scout Core vs. Chartwell Short Duration | Scout Core vs. Carillon Chartwell Short | Scout Core vs. Eagle Growth Income |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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