Correlation Between Carillon Scout and Forum Real

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

By analyzing existing cross correlation between Carillon Scout Small and Forum Real Estate, you can compare the effects of market volatilities on Carillon Scout and Forum Real 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 Forum Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carillon Scout and Forum Real.

Diversification Opportunities for Carillon Scout and Forum Real

0.94

Correlation Coefficient

Carillon Scout  Forum Real

Almost no diversification

The 3 months correlation between Carillon and Forum is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Carillon Scout Small and Forum Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forum Real Estate 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 Small are associated (or correlated) with Forum Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forum Real Estate has no effect on the direction of Carillon Scout i.e., Carillon Scout and Forum Real go up and down completely randomly.

Pair Corralation between Carillon Scout and Forum Real

Assuming the 90 days horizon Carillon Scout Small is expected to generate 16.24 times more return on investment than Forum Real. However, Carillon Scout is 16.24 times more volatile than Forum Real Estate. It trades about 0.16 of its potential returns per unit of risk. Forum Real Estate is currently generating about 0.69 per unit of risk. If you would invest  2,489  in Carillon Scout Small on May 16, 2025 and sell it today you would earn a total of  263.00  from holding Carillon Scout Small or generate 10.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.39%
Values	Daily Returns

Carillon Scout Small  vs.  Forum Real Estate

Carillon Scout Small

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Carillon Scout Small are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward-looking indicators, Carillon Scout may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Forum Real Estate

Risk-Adjusted Performance

Elite

Compared to the overall equity markets, risk-adjusted returns on investments in Forum Real Estate are ranked lower than 54 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Forum Real 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 Forum Real

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

The idea behind Carillon Scout Small and Forum Real Estate 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 Global Correlations module to find global opportunities by holding instruments from different markets.