Correlation Between Old Westbury and Carillon Scout
Can any of the company-specific risk be diversified away by investing in both Old Westbury and Carillon Scout 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 Old Westbury and Carillon Scout into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Westbury Short Term and Carillon Scout Mid, you can compare the effects of market volatilities on Old Westbury and Carillon Scout 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 Old Westbury with a short position of Carillon Scout. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Carillon Scout.
Diversification Opportunities for Old Westbury and Carillon Scout
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Old and Carillon is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Short Term and Carillon Scout Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carillon Scout Mid and Old Westbury 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 Old Westbury Short Term are associated (or correlated) with Carillon Scout. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carillon Scout Mid has no effect on the direction of Old Westbury i.e., Old Westbury and Carillon Scout go up and down completely randomly.
Pair Corralation between Old Westbury and Carillon Scout
Assuming the 90 days horizon Old Westbury Short Term is expected to under-perform the Carillon Scout. But the mutual fund apears to be less risky and, when comparing its historical volatility, Old Westbury Short Term is 11.29 times less risky than Carillon Scout. The mutual fund trades about -0.05 of its potential returns per unit of risk. The Carillon Scout Mid is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 2,518 in Carillon Scout Mid on August 28, 2024 and sell it today you would earn a total of 212.00 from holding Carillon Scout Mid or generate 8.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Old Westbury Short Term vs. Carillon Scout Mid
Performance |
| Timeline |
| Old Westbury Short |
| Carillon Scout Mid |
Old Westbury and Carillon Scout Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Carillon Scout
The main advantage of trading using opposite Old Westbury and Carillon Scout positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury position performs unexpectedly, Carillon Scout 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 Scout will offset losses from the drop in Carillon Scout's long position.| Old Westbury vs. Rational Special Situations | Old Westbury vs. Ab Value Fund | Old Westbury vs. Balanced Fund Investor | Old Westbury vs. Eic Value Fund |
| Carillon Scout vs. L Abbett Growth | Carillon Scout vs. Tfa Alphagen Growth | Carillon Scout vs. Chase Growth Fund | Carillon Scout vs. Small Pany Growth |
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.
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