Correlation Between Chase Growth and Corporate Bond
Can any of the company-specific risk be diversified away by investing in both Chase Growth and Corporate Bond 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 Corporate Bond 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 Corporate Bond Portfolio, you can compare the effects of market volatilities on Chase Growth and Corporate Bond 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 Corporate Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Corporate Bond.
Diversification Opportunities for Chase Growth and Corporate Bond
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chase and Corporate is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and Corporate Bond Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corporate Bond Portfolio 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 Corporate Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corporate Bond Portfolio has no effect on the direction of Chase Growth i.e., Chase Growth and Corporate Bond go up and down completely randomly.
Pair Corralation between Chase Growth and Corporate Bond
Assuming the 90 days horizon Chase Growth Fund is expected to generate 2.4 times more return on investment than Corporate Bond. However, Chase Growth is 2.4 times more volatile than Corporate Bond Portfolio. It trades about 0.13 of its potential returns per unit of risk. Corporate Bond Portfolio is currently generating about 0.08 per unit of risk. If you would invest 1,173 in Chase Growth Fund on September 12, 2024 and sell it today you would earn a total of 595.00 from holding Chase Growth Fund or generate 50.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
Chase Growth Fund vs. Corporate Bond Portfolio
Performance |
| Timeline |
| Chase Growth |
| Corporate Bond Portfolio |
Chase Growth and Corporate Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chase Growth and Corporate Bond
The main advantage of trading using opposite Chase Growth and Corporate Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth position performs unexpectedly, Corporate Bond 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 Corporate Bond will offset losses from the drop in Corporate Bond'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 |
| Corporate Bond vs. Eip Growth And | Corporate Bond vs. Chase Growth Fund | Corporate Bond vs. Needham Aggressive Growth | Corporate Bond vs. Qs Moderate Growth |
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.
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