Correlation Between Chase Growth and Saat Moderate
Can any of the company-specific risk be diversified away by investing in both Chase Growth and Saat Moderate 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 Saat Moderate 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 Saat Moderate Strategy, you can compare the effects of market volatilities on Chase Growth and Saat Moderate 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 Saat Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Saat Moderate.
Diversification Opportunities for Chase Growth and Saat Moderate
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chase and Saat is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and Saat Moderate Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Moderate Strategy 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 Saat Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Moderate Strategy has no effect on the direction of Chase Growth i.e., Chase Growth and Saat Moderate go up and down completely randomly.
Pair Corralation between Chase Growth and Saat Moderate
Assuming the 90 days horizon Chase Growth Fund is expected to generate 3.96 times more return on investment than Saat Moderate. However, Chase Growth is 3.96 times more volatile than Saat Moderate Strategy. It trades about 0.24 of its potential returns per unit of risk. Saat Moderate Strategy is currently generating about 0.12 per unit of risk. If you would invest 1,671 in Chase Growth Fund on August 29, 2024 and sell it today you would earn a total of 91.00 from holding Chase Growth Fund or generate 5.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chase Growth Fund vs. Saat Moderate Strategy
Performance |
| Timeline |
| Chase Growth |
| Saat Moderate Strategy |
Chase Growth and Saat Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chase Growth and Saat Moderate
The main advantage of trading using opposite Chase Growth and Saat Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth position performs unexpectedly, Saat Moderate 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 Saat Moderate will offset losses from the drop in Saat Moderate's long position.| Chase Growth vs. Growth Fund Of | Chase Growth vs. HUMANA INC | Chase Growth vs. Aquagold International | Chase Growth vs. Barloworld Ltd ADR |
| Saat Moderate vs. Vanguard Wellesley Income | Saat Moderate vs. HUMANA INC | Saat Moderate vs. Aquagold International | Saat Moderate vs. Barloworld Ltd ADR |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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