Correlation Between Eagle Growth and Scout Core
Can any of the company-specific risk be diversified away by investing in both Eagle Growth 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 Eagle Growth and Scout Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Growth Income and Scout E Bond, you can compare the effects of market volatilities on Eagle Growth 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 Eagle Growth with a short position of Scout Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Growth and Scout Core.
Diversification Opportunities for Eagle Growth and Scout Core
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eagle and Scout is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Growth Income 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 Eagle Growth 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 Growth Income 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 Eagle Growth i.e., Eagle Growth and Scout Core go up and down completely randomly.
Pair Corralation between Eagle Growth and Scout Core
Assuming the 90 days horizon Eagle Growth Income is expected to generate 2.09 times more return on investment than Scout Core. However, Eagle Growth is 2.09 times more volatile than Scout E Bond. It trades about 0.12 of its potential returns per unit of risk. Scout E Bond is currently generating about 0.21 per unit of risk. If you would invest 1,910 in Eagle Growth Income on November 30, 2024 and sell it today you would earn a total of 65.00 from holding Eagle Growth Income or generate 3.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Growth Income vs. Scout E Bond
Performance |
| Timeline |
| Eagle Growth Income |
| Scout E Bond |
Eagle Growth and Scout Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Growth and Scout Core
The main advantage of trading using opposite Eagle Growth and Scout Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Growth 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.| Eagle Growth vs. Nuveen Nwq Smallmid Cap | Eagle Growth vs. T Rowe Price | Eagle Growth vs. Nuveen Nwq Small Cap | Eagle Growth vs. T Rowe Price |
| Scout Core vs. Alpine Ultra Short | Scout Core vs. Transamerica Short Term Bond | Scout Core vs. Blackrock Global Longshort | Scout Core vs. Catholic Responsible Investments |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |