Correlation Between Chase Growth and The Chesapeake
Can any of the company-specific risk be diversified away by investing in both Chase Growth and The Chesapeake 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 The Chesapeake 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 The Chesapeake Growth, you can compare the effects of market volatilities on Chase Growth and The Chesapeake 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 The Chesapeake. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and The Chesapeake.
Diversification Opportunities for Chase Growth and The Chesapeake
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chase and THE is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and The Chesapeake Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chesapeake Growth 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 The Chesapeake. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chesapeake Growth has no effect on the direction of Chase Growth i.e., Chase Growth and The Chesapeake go up and down completely randomly.
Pair Corralation between Chase Growth and The Chesapeake
Assuming the 90 days horizon Chase Growth Fund is expected to generate 1.38 times more return on investment than The Chesapeake. However, Chase Growth is 1.38 times more volatile than The Chesapeake Growth. It trades about 0.34 of its potential returns per unit of risk. The Chesapeake Growth is currently generating about 0.28 per unit of risk. If you would invest 1,644 in Chase Growth Fund on September 1, 2024 and sell it today you would earn a total of 118.00 from holding Chase Growth Fund or generate 7.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Chase Growth Fund vs. The Chesapeake Growth
Performance |
| Timeline |
| Chase Growth |
| Chesapeake Growth |
Chase Growth and The Chesapeake Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chase Growth and The Chesapeake
The main advantage of trading using opposite Chase Growth and The Chesapeake positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth position performs unexpectedly, The Chesapeake 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 The Chesapeake will offset losses from the drop in The Chesapeake'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 |
| The Chesapeake vs. Emerald Growth Fund | The Chesapeake vs. Victory Rs Partners | The Chesapeake vs. Hotchkis Wiley Large | The Chesapeake 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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