Correlation Between Chase Growth and North Square
Can any of the company-specific risk be diversified away by investing in both Chase Growth and North Square 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 North Square 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 North Square Mckee, you can compare the effects of market volatilities on Chase Growth and North Square 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 North Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and North Square.
Diversification Opportunities for Chase Growth and North Square
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chase and North is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and North Square Mckee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Square Mckee 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 North Square. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Square Mckee has no effect on the direction of Chase Growth i.e., Chase Growth and North Square go up and down completely randomly.
Pair Corralation between Chase Growth and North Square
Assuming the 90 days horizon Chase Growth Fund is expected to generate 2.89 times more return on investment than North Square. However, Chase Growth is 2.89 times more volatile than North Square Mckee. It trades about 0.25 of its potential returns per unit of risk. North Square Mckee is currently generating about 0.06 per unit of risk. If you would invest 1,668 in Chase Growth Fund on August 31, 2024 and sell it today you would earn a total of 94.00 from holding Chase Growth Fund or generate 5.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chase Growth Fund vs. North Square Mckee
Performance |
| Timeline |
| Chase Growth |
| North Square Mckee |
Chase Growth and North Square Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chase Growth and North Square
The main advantage of trading using opposite Chase Growth and North Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth position performs unexpectedly, North Square 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 North Square will offset losses from the drop in North Square's long position.| Chase Growth vs. Europacific Growth Fund | Chase Growth vs. Washington Mutual Investors | Chase Growth vs. Capital World Growth | Chase Growth vs. HUMANA INC |
| North Square vs. Victory Rs Small | North Square vs. Growth Opportunities Fund | North Square vs. Chase Growth Fund | North Square vs. Champlain Mid Cap |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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