Correlation Between Chase Growth and Integrity Growth
Can any of the company-specific risk be diversified away by investing in both Chase Growth and Integrity 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 Integrity 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 Integrity Growth Income, you can compare the effects of market volatilities on Chase Growth and Integrity 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 Integrity Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Integrity Growth.
Diversification Opportunities for Chase Growth and Integrity Growth
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chase and Integrity is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and Integrity Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrity 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 Integrity Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrity Growth Income has no effect on the direction of Chase Growth i.e., Chase Growth and Integrity Growth go up and down completely randomly.
Pair Corralation between Chase Growth and Integrity Growth
Assuming the 90 days horizon Chase Growth Fund is expected to generate 1.5 times more return on investment than Integrity Growth. However, Chase Growth is 1.5 times more volatile than Integrity Growth Income. It trades about 0.34 of its potential returns per unit of risk. Integrity Growth Income is currently generating about 0.33 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. Integrity Growth Income
Performance |
| Timeline |
| Chase Growth |
| Integrity Growth Income |
Chase Growth and Integrity Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chase Growth and Integrity Growth
The main advantage of trading using opposite Chase Growth and Integrity Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth position performs unexpectedly, Integrity 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 Integrity Growth will offset losses from the drop in Integrity Growth'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 |
| Integrity Growth vs. Viking Tax Free Fund | Integrity Growth vs. Viking Tax Free Fund | Integrity Growth vs. Nebraska Municipal Fund | Integrity Growth vs. Nebraska Municipal 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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