Correlation Between Chase Growth and Columbia Select
Can any of the company-specific risk be diversified away by investing in both Chase Growth and Columbia Select 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 Columbia Select 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 Columbia Select Smaller Cap, you can compare the effects of market volatilities on Chase Growth and Columbia Select 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 Columbia Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Columbia Select.
Diversification Opportunities for Chase Growth and Columbia Select
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chase and Columbia is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and Columbia Select Smaller Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Select Smaller 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 Columbia Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Select Smaller has no effect on the direction of Chase Growth i.e., Chase Growth and Columbia Select go up and down completely randomly.
Pair Corralation between Chase Growth and Columbia Select
Assuming the 90 days horizon Chase Growth Fund is expected to generate 0.72 times more return on investment than Columbia Select. However, Chase Growth Fund is 1.39 times less risky than Columbia Select. It trades about 0.26 of its potential returns per unit of risk. Columbia Select Smaller Cap is currently generating about 0.16 per unit of risk. If you would invest 1,541 in Chase Growth Fund on September 2, 2024 and sell it today you would earn a total of 228.00 from holding Chase Growth Fund or generate 14.8% 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. Columbia Select Smaller Cap
Performance |
| Timeline |
| Chase Growth |
| Columbia Select Smaller |
Chase Growth and Columbia Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chase Growth and Columbia Select
The main advantage of trading using opposite Chase Growth and Columbia Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth position performs unexpectedly, Columbia Select 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 Columbia Select will offset losses from the drop in Columbia Select's long position.| Chase Growth vs. The Chesapeake Growth | Chase Growth vs. Aston Montag Caldwell | Chase Growth vs. Cambiar Opportunity Fund | Chase Growth vs. Amg Managers Brandywine |
| Columbia Select vs. Franklin High Income | Columbia Select vs. Pace High Yield | Columbia Select vs. Metropolitan West High | Columbia Select vs. Western Asset High |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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