Correlation Between Boston Trust and Leuthold Core
Can any of the company-specific risk be diversified away by investing in both Boston Trust and Leuthold 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 Boston Trust and Leuthold Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Trust Asset and Leuthold E Investment, you can compare the effects of market volatilities on Boston Trust and Leuthold 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 Boston Trust with a short position of Leuthold Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Trust and Leuthold Core.
Diversification Opportunities for Boston Trust and Leuthold Core
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Boston and Leuthold is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Boston Trust Asset and Leuthold E Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leuthold E Investment and Boston Trust 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 Boston Trust Asset are associated (or correlated) with Leuthold Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leuthold E Investment has no effect on the direction of Boston Trust i.e., Boston Trust and Leuthold Core go up and down completely randomly.
Pair Corralation between Boston Trust and Leuthold Core
Assuming the 90 days horizon Boston Trust Asset is expected to generate 0.9 times more return on investment than Leuthold Core. However, Boston Trust Asset is 1.11 times less risky than Leuthold Core. It trades about 0.12 of its potential returns per unit of risk. Leuthold E Investment is currently generating about 0.1 per unit of risk. If you would invest 6,463 in Boston Trust Asset on September 1, 2025 and sell it today you would earn a total of 232.00 from holding Boston Trust Asset or generate 3.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Trust Asset vs. Leuthold E Investment
Performance |
| Timeline |
| Boston Trust Asset |
| Leuthold E Investment |
Boston Trust and Leuthold Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Trust and Leuthold Core
The main advantage of trading using opposite Boston Trust and Leuthold Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Trust position performs unexpectedly, Leuthold 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 Leuthold Core will offset losses from the drop in Leuthold Core's long position.| Boston Trust vs. Pnc Balanced Allocation | Boston Trust vs. Franklin Moderate Allocation | Boston Trust vs. Gmo Global Developed | Boston Trust vs. Sterling Capital Behavioral |
| Leuthold Core vs. Timothy Largemip Cap Growth | Leuthold Core vs. Stringer Growth Fund | Leuthold Core vs. Riverparknext Century Growth | Leuthold Core vs. Slow Capital 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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