Correlation Between Chase Growth and Arrow Managed
Can any of the company-specific risk be diversified away by investing in both Chase Growth and Arrow Managed 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 Arrow Managed 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 Arrow Managed Futures, you can compare the effects of market volatilities on Chase Growth and Arrow Managed 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 Arrow Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Arrow Managed.
Diversification Opportunities for Chase Growth and Arrow Managed
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chase and Arrow is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and Arrow Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arrow Managed Futures 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 Arrow Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arrow Managed Futures has no effect on the direction of Chase Growth i.e., Chase Growth and Arrow Managed go up and down completely randomly.
Pair Corralation between Chase Growth and Arrow Managed
Assuming the 90 days horizon Chase Growth Fund is expected to generate 0.64 times more return on investment than Arrow Managed. However, Chase Growth Fund is 1.56 times less risky than Arrow Managed. It trades about 0.12 of its potential returns per unit of risk. Arrow Managed Futures is currently generating about -0.01 per unit of risk. If you would invest 1,208 in Chase Growth Fund on September 12, 2024 and sell it today you would earn a total of 560.00 from holding Chase Growth Fund or generate 46.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chase Growth Fund vs. Arrow Managed Futures
Performance |
| Timeline |
| Chase Growth |
| Arrow Managed Futures |
Chase Growth and Arrow Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chase Growth and Arrow Managed
The main advantage of trading using opposite Chase Growth and Arrow Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth position performs unexpectedly, Arrow Managed 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 Arrow Managed will offset losses from the drop in Arrow Managed'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 |
| Arrow Managed vs. Artisan Small Cap | Arrow Managed vs. Mid Cap Growth | Arrow Managed vs. L Abbett Growth | Arrow Managed vs. Chase Growth 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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