Correlation Between Carillon Scout and Boston Partners

Can any of the company-specific risk be diversified away by investing in both Carillon Scout and Boston Partners 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 Carillon Scout and Boston Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Carillon Scout Mid and Boston Partners Longshort, you can compare the effects of market volatilities on Carillon Scout and Boston Partners 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 Carillon Scout with a short position of Boston Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carillon Scout and Boston Partners.

Diversification Opportunities for Carillon Scout and Boston Partners

0.95

Correlation Coefficient

Carillon Scout  Boston Partners

Almost no diversification

The 3 months correlation between Carillon and Boston is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Carillon Scout Mid and Boston Partners Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Partners Longshort and Carillon Scout 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 Carillon Scout Mid are associated (or correlated) with Boston Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Partners Longshort has no effect on the direction of Carillon Scout i.e., Carillon Scout and Boston Partners go up and down completely randomly.

Pair Corralation between Carillon Scout and Boston Partners

Assuming the 90 days horizon Carillon Scout Mid is expected to generate 1.95 times more return on investment than Boston Partners. However, Carillon Scout is 1.95 times more volatile than Boston Partners Longshort. It trades about 0.21 of its potential returns per unit of risk. Boston Partners Longshort is currently generating about 0.18 per unit of risk. If you would invest  2,282  in Carillon Scout Mid on May 3, 2025 and sell it today you would earn a total of  238.00  from holding Carillon Scout Mid or generate 10.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Carillon Scout Mid  vs.  Boston Partners Longshort

Carillon Scout Mid

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Carillon Scout Mid are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Carillon Scout may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Boston Partners Longshort

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Boston Partners Longshort are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Boston Partners is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Carillon Scout and Boston Partners

The main advantage of trading using opposite Carillon Scout and Boston Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carillon Scout position performs unexpectedly, Boston Partners 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 Boston Partners will offset losses from the drop in Boston Partners' long position.

The idea behind Carillon Scout Mid and Boston Partners Longshort pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.