Correlation Between Vanguard Mid and Carillon Scout
Can any of the company-specific risk be diversified away by investing in both Vanguard Mid 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 Vanguard Mid and Carillon Scout into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Mid Cap Index and Carillon Scout Mid, you can compare the effects of market volatilities on Vanguard Mid 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 Vanguard Mid with a short position of Carillon Scout. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Mid and Carillon Scout.
Diversification Opportunities for Vanguard Mid and Carillon Scout
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Vanguard and Carillon is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Mid Cap Index 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 Vanguard Mid 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 Vanguard Mid Cap Index 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 Vanguard Mid i.e., Vanguard Mid and Carillon Scout go up and down completely randomly.
Pair Corralation between Vanguard Mid and Carillon Scout
Assuming the 90 days horizon Vanguard Mid is expected to generate 1.16 times less return on investment than Carillon Scout. But when comparing it to its historical volatility, Vanguard Mid Cap Index is 1.0 times less risky than Carillon Scout. It trades about 0.25 of its potential returns per unit of risk. Carillon Scout Mid is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 2,143 in Carillon Scout Mid on April 14, 2025 and sell it today you would earn a total of 365.00 from holding Carillon Scout Mid or generate 17.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Mid Cap Index vs. Carillon Scout Mid
Performance |
| Timeline |
| Vanguard Mid Cap |
| Carillon Scout Mid |
Vanguard Mid and Carillon Scout Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Mid and Carillon Scout
The main advantage of trading using opposite Vanguard Mid and Carillon Scout positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Mid 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.| Vanguard Mid vs. Vanguard Small Cap Index | Vanguard Mid vs. Vanguard 500 Index | Vanguard Mid vs. Vanguard Growth Index | Vanguard Mid vs. Vanguard Total International |
| Carillon Scout vs. Ab Select Equity | Carillon Scout vs. T Rowe Price | Carillon Scout vs. Shelton Emerging Markets | Carillon Scout vs. Tax Managed International Equity |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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