Correlation Between Chase Growth and Six Circles
Can any of the company-specific risk be diversified away by investing in both Chase Growth and Six Circles 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 Six Circles 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 Six Circles Managed, you can compare the effects of market volatilities on Chase Growth and Six Circles 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 Six Circles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Six Circles.
Diversification Opportunities for Chase Growth and Six Circles
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chase and Six is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and Six Circles Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Six Circles Managed 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 Six Circles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Six Circles Managed has no effect on the direction of Chase Growth i.e., Chase Growth and Six Circles go up and down completely randomly.
Pair Corralation between Chase Growth and Six Circles
Assuming the 90 days horizon Chase Growth Fund is expected to under-perform the Six Circles. In addition to that, Chase Growth is 1.21 times more volatile than Six Circles Managed. It trades about -0.13 of its total potential returns per unit of risk. Six Circles Managed is currently generating about -0.1 per unit of volatility. If you would invest 2,118 in Six Circles Managed on November 28, 2024 and sell it today you would lose (33.00) from holding Six Circles Managed or give up 1.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chase Growth Fund vs. Six Circles Managed
Performance |
| Timeline |
| Chase Growth |
| Six Circles Managed |
Chase Growth and Six Circles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chase Growth and Six Circles
The main advantage of trading using opposite Chase Growth and Six Circles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth position performs unexpectedly, Six Circles 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 Six Circles will offset losses from the drop in Six Circles' 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 |
| Six Circles vs. Six Circles Ultra | Six Circles vs. Six Circles Tax | Six Circles vs. Six Circles Unconstrained | Six Circles vs. Six Circles Managed |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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