Correlation Between Eagle Growth and Carillon Scout
Can any of the company-specific risk be diversified away by investing in both Eagle Growth 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 Eagle Growth and Carillon Scout 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 Carillon Scout Small, you can compare the effects of market volatilities on Eagle Growth 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 Eagle Growth with a short position of Carillon Scout. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Growth and Carillon Scout.
Diversification Opportunities for Eagle Growth and Carillon Scout
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eagle and Carillon is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Growth Income and Carillon Scout Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carillon Scout Small 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 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 Small has no effect on the direction of Eagle Growth i.e., Eagle Growth and Carillon Scout go up and down completely randomly.
Pair Corralation between Eagle Growth and Carillon Scout
Assuming the 90 days horizon Eagle Growth is expected to generate 1.35 times less return on investment than Carillon Scout. But when comparing it to its historical volatility, Eagle Growth Income is 1.94 times less risky than Carillon Scout. It trades about 0.23 of its potential returns per unit of risk. Carillon Scout Small is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,492 in Carillon Scout Small on June 3, 2025 and sell it today you would earn a total of 277.00 from holding Carillon Scout Small or generate 11.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Growth Income vs. Carillon Scout Small
Performance |
| Timeline |
| Eagle Growth Income |
| Carillon Scout Small |
Eagle Growth and Carillon Scout Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Growth and Carillon Scout
The main advantage of trading using opposite Eagle Growth and Carillon Scout positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Growth 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.| Eagle Growth vs. Aqr Small Cap | Eagle Growth vs. Western Asset Diversified | Eagle Growth vs. Old Westbury Small | Eagle Growth vs. Guidemark Smallmid Cap |
| Carillon Scout vs. Chartwell Short Duration | Carillon Scout vs. Chartwell Short Duration | Carillon Scout vs. Carillon Chartwell Short | Carillon Scout vs. Eagle Growth Income |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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