Correlation Between Scout E and Eagle Growth
Can any of the company-specific risk be diversified away by investing in both Scout E and Eagle Growth 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 Scout E and Eagle Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scout E Plus and Eagle Growth Income, you can compare the effects of market volatilities on Scout E and Eagle Growth 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 Scout E with a short position of Eagle Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scout E and Eagle Growth.
Diversification Opportunities for Scout E and Eagle Growth
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Scout and Eagle is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Scout E Plus and Eagle Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Growth Income and Scout E 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 Scout E Plus are associated (or correlated) with Eagle Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Growth Income has no effect on the direction of Scout E i.e., Scout E and Eagle Growth go up and down completely randomly.
Pair Corralation between Scout E and Eagle Growth
Assuming the 90 days horizon Scout E Plus is expected to under-perform the Eagle Growth. But the mutual fund apears to be less risky and, when comparing its historical volatility, Scout E Plus is 2.27 times less risky than Eagle Growth. The mutual fund trades about -0.03 of its potential returns per unit of risk. The Eagle Growth Income is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,238 in Eagle Growth Income on August 27, 2024 and sell it today you would earn a total of 60.00 from holding Eagle Growth Income or generate 2.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scout E Plus vs. Eagle Growth Income
Performance |
| Timeline |
| Scout E Plus |
| Eagle Growth Income |
Scout E and Eagle Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scout E and Eagle Growth
The main advantage of trading using opposite Scout E and Eagle Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scout E position performs unexpectedly, Eagle Growth 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 Eagle Growth will offset losses from the drop in Eagle Growth's long position.| Scout E vs. Pace International Emerging | Scout E vs. Nasdaq 100 2x Strategy | Scout E vs. Black Oak Emerging | Scout E vs. Origin Emerging Markets |
| Eagle Growth vs. Chartwell Short Duration | Eagle Growth vs. Carillon Chartwell Short | Eagle Growth vs. Chartwell Short Duration | Eagle Growth vs. Carillon Chartwell Short |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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