Correlation Between Growth Fund and Chase Growth
Can any of the company-specific risk be diversified away by investing in both Growth Fund and Chase Growth 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 Growth Fund and Chase Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Of and Chase Growth Fund, you can compare the effects of market volatilities on Growth Fund and Chase Growth 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 Growth Fund with a short position of Chase Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Chase Growth.
Diversification Opportunities for Growth Fund and Chase Growth
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Growth and Chase is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Chase Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chase Growth and Growth Fund 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 Growth Fund Of are associated (or correlated) with Chase Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chase Growth has no effect on the direction of Growth Fund i.e., Growth Fund and Chase Growth go up and down completely randomly.
Pair Corralation between Growth Fund and Chase Growth
Assuming the 90 days horizon Growth Fund is expected to generate 1.57 times less return on investment than Chase Growth. But when comparing it to its historical volatility, Growth Fund Of is 1.05 times less risky than Chase Growth. It trades about 0.16 of its potential returns per unit of risk. Chase Growth Fund is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,668 in Chase Growth Fund on August 31, 2024 and sell it today you would earn a total of 94.00 from holding Chase Growth Fund or generate 5.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Fund Of vs. Chase Growth Fund
Performance |
| Timeline |
| Growth Fund |
| Chase Growth |
Growth Fund and Chase Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Chase Growth
The main advantage of trading using opposite Growth Fund and Chase Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Chase Growth 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 Chase Growth will offset losses from the drop in Chase Growth's long position.| Growth Fund vs. Europacific Growth Fund | Growth Fund vs. Washington Mutual Investors | Growth Fund vs. Capital World Growth | Growth Fund vs. HUMANA INC |
| Chase Growth vs. Europacific Growth Fund | Chase Growth vs. Washington Mutual Investors | Chase Growth vs. Capital World Growth | Chase Growth vs. HUMANA INC |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |