Correlation Between Chase Growth and Limited Duration
Can any of the company-specific risk be diversified away by investing in both Chase Growth and Limited Duration 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 Limited Duration 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 Limited Duration Fund, you can compare the effects of market volatilities on Chase Growth and Limited Duration 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 Limited Duration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Limited Duration.
Diversification Opportunities for Chase Growth and Limited Duration
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chase and Limited is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and Limited Duration Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Limited Duration 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 Limited Duration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Limited Duration has no effect on the direction of Chase Growth i.e., Chase Growth and Limited Duration go up and down completely randomly.
Pair Corralation between Chase Growth and Limited Duration
Assuming the 90 days horizon Chase Growth Fund is expected to generate 6.77 times more return on investment than Limited Duration. However, Chase Growth is 6.77 times more volatile than Limited Duration Fund. It trades about 0.13 of its potential returns per unit of risk. Limited Duration Fund is currently generating about 0.18 per unit of risk. If you would invest 1,484 in Chase Growth Fund on September 3, 2024 and sell it today you would earn a total of 285.00 from holding Chase Growth Fund or generate 19.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chase Growth Fund vs. Limited Duration Fund
Performance |
| Timeline |
| Chase Growth |
| Limited Duration |
Chase Growth and Limited Duration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chase Growth and Limited Duration
The main advantage of trading using opposite Chase Growth and Limited Duration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth position performs unexpectedly, Limited Duration 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 Limited Duration will offset losses from the drop in Limited Duration'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 |
| Limited Duration vs. Smallcap Growth Fund | Limited Duration vs. Mid Cap Growth | Limited Duration vs. Goldman Sachs Growth | Limited Duration vs. Chase Growth Fund |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |