Correlation Between Chase Growth and Aston Montag
Can any of the company-specific risk be diversified away by investing in both Chase Growth and Aston Montag 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 Aston Montag 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 Aston Montag Caldwell, you can compare the effects of market volatilities on Chase Growth and Aston Montag 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 Aston Montag. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Aston Montag.
Diversification Opportunities for Chase Growth and Aston Montag
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chase and Aston is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and Aston Montag Caldwell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aston Montag Caldwell 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 Aston Montag. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aston Montag Caldwell has no effect on the direction of Chase Growth i.e., Chase Growth and Aston Montag go up and down completely randomly.
Pair Corralation between Chase Growth and Aston Montag
Assuming the 90 days horizon Chase Growth is expected to generate 10.38 times less return on investment than Aston Montag. But when comparing it to its historical volatility, Chase Growth Fund is 1.23 times less risky than Aston Montag. It trades about 0.02 of its potential returns per unit of risk. Aston Montag Caldwell is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,378 in Aston Montag Caldwell on September 12, 2024 and sell it today you would earn a total of 30.00 from holding Aston Montag Caldwell or generate 2.18% 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. Aston Montag Caldwell
Performance |
| Timeline |
| Chase Growth |
| Aston Montag Caldwell |
Chase Growth and Aston Montag Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chase Growth and Aston Montag
The main advantage of trading using opposite Chase Growth and Aston Montag positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth position performs unexpectedly, Aston Montag 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 Aston Montag will offset losses from the drop in Aston Montag'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 |
| Aston Montag vs. American Funds The | Aston Montag vs. American Funds The | Aston Montag vs. Growth Fund Of | Aston Montag vs. Growth Fund Of |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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