Correlation Between Chase Growth and Ancora/thelen Small-mid
Can any of the company-specific risk be diversified away by investing in both Chase Growth and Ancora/thelen Small-mid 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 Chase Growth and Ancora/thelen Small-mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chase Growth Fund and Ancorathelen Small Mid Cap, you can compare the effects of market volatilities on Chase Growth and Ancora/thelen Small-mid 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 Chase Growth with a short position of Ancora/thelen Small-mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Ancora/thelen Small-mid.
Diversification Opportunities for Chase Growth and Ancora/thelen Small-mid
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chase and Ancora/thelen is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and Ancorathelen Small Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ancora/thelen Small-mid and Chase Growth 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 Chase Growth Fund are associated (or correlated) with Ancora/thelen Small-mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ancora/thelen Small-mid has no effect on the direction of Chase Growth i.e., Chase Growth and Ancora/thelen Small-mid go up and down completely randomly.
Pair Corralation between Chase Growth and Ancora/thelen Small-mid
Assuming the 90 days horizon Chase Growth Fund is expected to generate 1.12 times more return on investment than Ancora/thelen Small-mid. However, Chase Growth is 1.12 times more volatile than Ancorathelen Small Mid Cap. It trades about 0.05 of its potential returns per unit of risk. Ancorathelen Small Mid Cap is currently generating about 0.05 per unit of risk. If you would invest 1,118 in Chase Growth Fund on November 27, 2024 and sell it today you would earn a total of 305.00 from holding Chase Growth Fund or generate 27.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chase Growth Fund vs. Ancorathelen Small Mid Cap
Performance |
| Timeline |
| Chase Growth |
| Ancora/thelen Small-mid |
Chase Growth and Ancora/thelen Small-mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chase Growth and Ancora/thelen Small-mid
The main advantage of trading using opposite Chase Growth and Ancora/thelen Small-mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth position performs unexpectedly, Ancora/thelen Small-mid 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 Ancora/thelen Small-mid will offset losses from the drop in Ancora/thelen Small-mid's long position.| Chase Growth vs. The Chesapeake Growth | Chase Growth vs. Aston Montag Caldwell | Chase Growth vs. The Jensen Portfolio | Chase Growth vs. Cambiar Opportunity Fund |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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