Correlation Between Chase Growth and Eagle Growth
Can any of the company-specific risk be diversified away by investing in both Chase Growth and Eagle Growth 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 Eagle Growth 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 Eagle Growth Income, you can compare the effects of market volatilities on Chase Growth and Eagle Growth 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 Eagle Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Eagle Growth.
Diversification Opportunities for Chase Growth and Eagle Growth
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chase and Eagle is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and Eagle Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Growth Income 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 Eagle Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Growth Income has no effect on the direction of Chase Growth i.e., Chase Growth and Eagle Growth go up and down completely randomly.
Pair Corralation between Chase Growth and Eagle Growth
Assuming the 90 days horizon Chase Growth Fund is expected to generate 1.31 times more return on investment than Eagle Growth. However, Chase Growth is 1.31 times more volatile than Eagle Growth Income. It trades about 0.34 of its potential returns per unit of risk. Eagle Growth Income is currently generating about 0.31 per unit of risk. If you would invest 1,651 in Chase Growth Fund on September 2, 2024 and sell it today you would earn a total of 118.00 from holding Chase Growth Fund or generate 7.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chase Growth Fund vs. Eagle Growth Income
Performance |
| Timeline |
| Chase Growth |
| Eagle Growth Income |
Chase Growth and Eagle Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chase Growth and Eagle Growth
The main advantage of trading using opposite Chase Growth and Eagle Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth position performs unexpectedly, Eagle Growth 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 Eagle Growth will offset losses from the drop in Eagle Growth's long position.| Chase Growth vs. The Chesapeake Growth | Chase Growth vs. Aston Montag Caldwell | Chase Growth vs. Cambiar Opportunity Fund | Chase Growth vs. Amg Managers Brandywine |
| Eagle Growth vs. Fa 529 Aggressive | Eagle Growth vs. Ab Value Fund | Eagle Growth vs. Qs Large Cap | Eagle Growth vs. Western Asset Municipal |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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