Correlation Between Chase Growth and Sierra Core
Can any of the company-specific risk be diversified away by investing in both Chase Growth and Sierra Core 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 Sierra Core 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 Sierra E Retirement, you can compare the effects of market volatilities on Chase Growth and Sierra Core 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 Sierra Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Sierra Core.
Diversification Opportunities for Chase Growth and Sierra Core
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chase and Sierra is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and Sierra E Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sierra E Retirement 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 Sierra Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sierra E Retirement has no effect on the direction of Chase Growth i.e., Chase Growth and Sierra Core go up and down completely randomly.
Pair Corralation between Chase Growth and Sierra Core
Assuming the 90 days horizon Chase Growth Fund is expected to generate 3.92 times more return on investment than Sierra Core. However, Chase Growth is 3.92 times more volatile than Sierra E Retirement. It trades about 0.06 of its potential returns per unit of risk. Sierra E Retirement is currently generating about 0.04 per unit of risk. If you would invest 1,070 in Chase Growth Fund on October 13, 2024 and sell it today you would earn a total of 384.00 from holding Chase Growth Fund or generate 35.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chase Growth Fund vs. Sierra E Retirement
Performance |
| Timeline |
| Chase Growth |
| Sierra E Retirement |
Chase Growth and Sierra Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chase Growth and Sierra Core
The main advantage of trading using opposite Chase Growth and Sierra Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth position performs unexpectedly, Sierra Core 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 Sierra Core will offset losses from the drop in Sierra Core'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 |
| Sierra Core vs. Rational Defensive Growth | Sierra Core vs. Needham Aggressive Growth | Sierra Core vs. Eip Growth And | Sierra Core 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |