Correlation Between Chase Growth and Emerald Growth
Can any of the company-specific risk be diversified away by investing in both Chase Growth and Emerald 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 Emerald 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 Emerald Growth Fund, you can compare the effects of market volatilities on Chase Growth and Emerald 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 Emerald Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Emerald Growth.
Diversification Opportunities for Chase Growth and Emerald Growth
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chase and Emerald is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and Emerald Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerald 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 Emerald Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerald Growth has no effect on the direction of Chase Growth i.e., Chase Growth and Emerald Growth go up and down completely randomly.
Pair Corralation between Chase Growth and Emerald Growth
Assuming the 90 days horizon Chase Growth Fund is expected to generate 0.69 times more return on investment than Emerald Growth. However, Chase Growth Fund is 1.46 times less risky than Emerald Growth. It trades about 0.09 of its potential returns per unit of risk. Emerald Growth Fund is currently generating about 0.06 per unit of risk. If you would invest 1,132 in Chase Growth Fund on August 29, 2024 and sell it today you would earn a total of 630.00 from holding Chase Growth Fund or generate 55.65% 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. Emerald Growth Fund
Performance |
| Timeline |
| Chase Growth |
| Emerald Growth |
Chase Growth and Emerald Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chase Growth and Emerald Growth
The main advantage of trading using opposite Chase Growth and Emerald Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth position performs unexpectedly, Emerald 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 Emerald Growth will offset losses from the drop in Emerald Growth's long position.| Chase Growth vs. Growth Fund Of | Chase Growth vs. HUMANA INC | Chase Growth vs. Aquagold International | Chase Growth vs. Barloworld Ltd ADR |
| Emerald Growth vs. Putnam Equity Income | Emerald Growth vs. Putnam Growth Opportunities | Emerald Growth vs. HUMANA INC | Emerald Growth vs. Aquagold International |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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