Correlation Between Chase Growth and Hartford Small
Can any of the company-specific risk be diversified away by investing in both Chase Growth and Hartford Small 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 Hartford Small 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 Hartford Small, you can compare the effects of market volatilities on Chase Growth and Hartford Small 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 Hartford Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Hartford Small.
Diversification Opportunities for Chase Growth and Hartford Small
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chase and Hartford is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and The Hartford Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Small 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 Hartford Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Small has no effect on the direction of Chase Growth i.e., Chase Growth and Hartford Small go up and down completely randomly.
Pair Corralation between Chase Growth and Hartford Small
Assuming the 90 days horizon Chase Growth Fund is expected to under-perform the Hartford Small. In addition to that, Chase Growth is 2.3 times more volatile than The Hartford Small. It trades about -0.1 of its total potential returns per unit of risk. The Hartford Small is currently generating about 0.09 per unit of volatility. If you would invest 2,055 in The Hartford Small on September 13, 2024 and sell it today you would earn a total of 91.00 from holding The Hartford Small or generate 4.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chase Growth Fund vs. The Hartford Small
Performance |
| Timeline |
| Chase Growth |
| Hartford Small |
Chase Growth and Hartford Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chase Growth and Hartford Small
The main advantage of trading using opposite Chase Growth and Hartford Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth position performs unexpectedly, Hartford Small 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 Hartford Small will offset losses from the drop in Hartford Small'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 |
| Hartford Small vs. Transamerica Intermediate Muni | Hartford Small vs. T Rowe Price | Hartford Small vs. Nuveen Minnesota Municipal | Hartford Small vs. Blrc Sgy Mnp |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| CEOs Directory Screen CEOs from public companies around the world |