Correlation Between Eagle Small and Carillon Scout
Can any of the company-specific risk be diversified away by investing in both Eagle Small 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 Small 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 Small Cap and Carillon Scout Mid, you can compare the effects of market volatilities on Eagle Small 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 Small with a short position of Carillon Scout. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Small and Carillon Scout.
Diversification Opportunities for Eagle Small and Carillon Scout
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eagle and Carillon is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Small Cap 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 Eagle Small 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 Small Cap 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 Eagle Small i.e., Eagle Small and Carillon Scout go up and down completely randomly.
Pair Corralation between Eagle Small and Carillon Scout
Assuming the 90 days horizon Eagle Small Cap is expected to generate 1.38 times more return on investment than Carillon Scout. However, Eagle Small is 1.38 times more volatile than Carillon Scout Mid. It trades about 0.17 of its potential returns per unit of risk. Carillon Scout Mid is currently generating about 0.14 per unit of risk. If you would invest 1,940 in Eagle Small Cap on May 29, 2025 and sell it today you would earn a total of 204.00 from holding Eagle Small Cap or generate 10.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Small Cap vs. Carillon Scout Mid
Performance |
| Timeline |
| Eagle Small Cap |
| Carillon Scout Mid |
Eagle Small and Carillon Scout Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Small and Carillon Scout
The main advantage of trading using opposite Eagle Small and Carillon Scout positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Small 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 Small vs. Upright Growth Income | Eagle Small vs. Chase Growth Fund | Eagle Small vs. Auer Growth Fund | Eagle Small vs. Eagle Growth Income |
| Carillon Scout vs. Carillon Chartwell Short | 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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