Correlation Between Scout Unconstrained and Eagle Mid
Can any of the company-specific risk be diversified away by investing in both Scout Unconstrained and Eagle 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 Scout Unconstrained and Eagle Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scout Unconstrained Bond and Eagle Mid Cap, you can compare the effects of market volatilities on Scout Unconstrained and Eagle 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 Scout Unconstrained with a short position of Eagle Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scout Unconstrained and Eagle Mid.
Diversification Opportunities for Scout Unconstrained and Eagle Mid
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Scout and Eagle is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Scout Unconstrained Bond and Eagle Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Mid Cap and Scout Unconstrained 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 Unconstrained Bond are associated (or correlated) with Eagle Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Mid Cap has no effect on the direction of Scout Unconstrained i.e., Scout Unconstrained and Eagle Mid go up and down completely randomly.
Pair Corralation between Scout Unconstrained and Eagle Mid
Assuming the 90 days horizon Scout Unconstrained Bond is expected to generate 0.1 times more return on investment than Eagle Mid. However, Scout Unconstrained Bond is 10.02 times less risky than Eagle Mid. It trades about 0.16 of its potential returns per unit of risk. Eagle Mid Cap is currently generating about -0.16 per unit of risk. If you would invest 1,229 in Scout Unconstrained Bond on January 15, 2025 and sell it today you would earn a total of 24.00 from holding Scout Unconstrained Bond or generate 1.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scout Unconstrained Bond vs. Eagle Mid Cap
Performance |
| Timeline |
| Scout Unconstrained Bond |
| Eagle Mid Cap |
Scout Unconstrained and Eagle Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scout Unconstrained and Eagle Mid
The main advantage of trading using opposite Scout Unconstrained and Eagle Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scout Unconstrained position performs unexpectedly, Eagle 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 Eagle Mid will offset losses from the drop in Eagle Mid's long position.| Scout Unconstrained vs. Gamco Global Gold | Scout Unconstrained vs. Deutsche Gold Precious | Scout Unconstrained vs. International Investors Gold | Scout Unconstrained vs. Oppenheimer Gold Special |
| Eagle Mid vs. William Blair Small | Eagle Mid vs. Boston Partners Small | Eagle Mid vs. Vanguard Small Cap Value | Eagle Mid vs. Fpa Queens Road |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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