Correlation Between Chase Growth and Value Fund
Can any of the company-specific risk be diversified away by investing in both Chase Growth and Value Fund 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 Value Fund 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 Value Fund R5, you can compare the effects of market volatilities on Chase Growth and Value Fund 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 Value Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Value Fund.
Diversification Opportunities for Chase Growth and Value Fund
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chase and Value is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and Value Fund R5 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Value Fund R5 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 Value Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Value Fund R5 has no effect on the direction of Chase Growth i.e., Chase Growth and Value Fund go up and down completely randomly.
Pair Corralation between Chase Growth and Value Fund
Assuming the 90 days horizon Chase Growth Fund is expected to generate 1.67 times more return on investment than Value Fund. However, Chase Growth is 1.67 times more volatile than Value Fund R5. It trades about 0.07 of its potential returns per unit of risk. Value Fund R5 is currently generating about 0.05 per unit of risk. If you would invest 1,040 in Chase Growth Fund on September 14, 2024 and sell it today you would earn a total of 447.00 from holding Chase Growth Fund or generate 42.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Chase Growth Fund vs. Value Fund R5
Performance |
| Timeline |
| Chase Growth |
| Value Fund R5 |
Chase Growth and Value Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chase Growth and Value Fund
The main advantage of trading using opposite Chase Growth and Value Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth position performs unexpectedly, Value Fund 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 Value Fund will offset losses from the drop in Value Fund'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 |
| Value Fund vs. T Rowe Price | Value Fund vs. Bbh Intermediate Municipal | Value Fund vs. Baird Strategic Municipal | Value Fund vs. Dws Government Money |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |