Correlation Between Chase Growth and Ab Small
Can any of the company-specific risk be diversified away by investing in both Chase Growth and Ab 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 Ab 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 Ab Small Cap, you can compare the effects of market volatilities on Chase Growth and Ab 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 Ab Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Ab Small.
Diversification Opportunities for Chase Growth and Ab Small
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chase and QUAIX is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and Ab Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Small Cap 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 Ab Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Small Cap has no effect on the direction of Chase Growth i.e., Chase Growth and Ab Small go up and down completely randomly.
Pair Corralation between Chase Growth and Ab Small
Assuming the 90 days horizon Chase Growth Fund is expected to generate 0.73 times more return on investment than Ab Small. However, Chase Growth Fund is 1.37 times less risky than Ab Small. It trades about 0.12 of its potential returns per unit of risk. Ab Small Cap is currently generating about 0.07 per unit of risk. If you would invest 1,418 in Chase Growth Fund on September 1, 2024 and sell it today you would earn a total of 344.00 from holding Chase Growth Fund or generate 24.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chase Growth Fund vs. Ab Small Cap
Performance |
| Timeline |
| Chase Growth |
| Ab Small Cap |
Chase Growth and Ab Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chase Growth and Ab Small
The main advantage of trading using opposite Chase Growth and Ab Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth position performs unexpectedly, Ab 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 Ab Small will offset losses from the drop in Ab 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 |
| Ab Small vs. Pgim Jennison Diversified | Ab Small vs. Oppenheimer International Diversified | Ab Small vs. Jhancock Diversified Macro | Ab Small vs. Sentinel Small Pany |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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