Correlation Between Scout Core and Bbh Intermediate
Can any of the company-specific risk be diversified away by investing in both Scout Core and Bbh Intermediate 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 Scout Core and Bbh Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scout E Bond and Bbh Intermediate Municipal, you can compare the effects of market volatilities on Scout Core and Bbh Intermediate 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 Scout Core with a short position of Bbh Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scout Core and Bbh Intermediate.
Diversification Opportunities for Scout Core and Bbh Intermediate
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Scout and Bbh is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Scout E Bond and Bbh Intermediate Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bbh Intermediate Mun and Scout Core 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 Scout E Bond are associated (or correlated) with Bbh Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bbh Intermediate Mun has no effect on the direction of Scout Core i.e., Scout Core and Bbh Intermediate go up and down completely randomly.
Pair Corralation between Scout Core and Bbh Intermediate
Assuming the 90 days horizon Scout E Bond is expected to generate 2.43 times more return on investment than Bbh Intermediate. However, Scout Core is 2.43 times more volatile than Bbh Intermediate Municipal. It trades about 0.1 of its potential returns per unit of risk. Bbh Intermediate Municipal is currently generating about 0.19 per unit of risk. If you would invest 993.00 in Scout E Bond on June 21, 2024 and sell it today you would earn a total of 118.00 from holding Scout E Bond or generate 11.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Scout E Bond vs. Bbh Intermediate Municipal
Performance |
Timeline |
Scout E Bond |
Bbh Intermediate Mun |
Scout Core and Bbh Intermediate Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Scout Core and Bbh Intermediate
The main advantage of trading using opposite Scout Core and Bbh Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scout Core position performs unexpectedly, Bbh Intermediate 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 Bbh Intermediate will offset losses from the drop in Bbh Intermediate's long position.Scout Core vs. Deutsche Health And | Scout Core vs. Baillie Gifford Health | Scout Core vs. Baron Health Care | Scout Core vs. Putnam Global Health |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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