Correlation Between Scout Mid and Carillon Chartwell

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

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

Diversification Opportunities for Scout Mid and Carillon Chartwell

0.98

Correlation Coefficient

Scout Mid  Carillon Chartwell

Almost no diversification

The 3 months correlation between Scout and Carillon is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Scout Mid Cap and Carillon Chartwell Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carillon Chartwell Mid and Scout 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 Scout Mid Cap are associated (or correlated) with Carillon Chartwell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carillon Chartwell Mid has no effect on the direction of Scout Mid i.e., Scout Mid and Carillon Chartwell go up and down completely randomly.

Pair Corralation between Scout Mid and Carillon Chartwell

Assuming the 90 days horizon Scout Mid Cap is expected to generate 0.79 times more return on investment than Carillon Chartwell. However, Scout Mid Cap is 1.26 times less risky than Carillon Chartwell. It trades about 0.15 of its potential returns per unit of risk. Carillon Chartwell Mid is currently generating about 0.12 per unit of risk. If you would invest  2,285  in Scout Mid Cap on May 5, 2025 and sell it today you would earn a total of  174.00  from holding Scout Mid Cap or generate 7.61% return on investment over 90 days.

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

Scout Mid Cap  vs.  Carillon Chartwell Mid

Scout Mid Cap

Risk-Adjusted Performance

Good

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

Carillon Chartwell Mid

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Carillon Chartwell Mid are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Carillon Chartwell may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Scout Mid and Carillon Chartwell

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

The idea behind Scout Mid Cap and Carillon Chartwell 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.