Correlation Between Praxis Genesis and Carillon Scout

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

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

Diversification Opportunities for Praxis Genesis and Carillon Scout

0.94

Correlation Coefficient

Praxis Genesis  Carillon Scout

Almost no diversification

The 3 months correlation between Praxis and Carillon is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Praxis Genesis Growth 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 Praxis Genesis 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 Praxis Genesis Growth 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 Praxis Genesis i.e., Praxis Genesis and Carillon Scout go up and down completely randomly.

Pair Corralation between Praxis Genesis and Carillon Scout

Assuming the 90 days horizon Praxis Genesis is expected to generate 1.14 times less return on investment than Carillon Scout. But when comparing it to its historical volatility, Praxis Genesis Growth is 1.41 times less risky than Carillon Scout. It trades about 0.07 of its potential returns per unit of risk. Carillon Scout Mid is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  2,267  in Carillon Scout Mid on July 29, 2025 and sell it today you would earn a total of  374.00  from holding Carillon Scout Mid or generate 16.5% return on investment over 90 days.

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

Praxis Genesis Growth  vs.  Carillon Scout Mid

Praxis Genesis Growth

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Praxis Genesis Growth are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Praxis Genesis is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Carillon Scout Mid

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Carillon Scout Mid are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Carillon Scout is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Praxis Genesis and Carillon Scout

The main advantage of trading using opposite Praxis Genesis and Carillon Scout positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Praxis Genesis 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.

The idea behind Praxis Genesis Growth and Carillon Scout Mid 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.

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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.