Correlation Between Chase Growth and Income Fund
Can any of the company-specific risk be diversified away by investing in both Chase Growth and Income Fund 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 Income Fund 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 Income Fund Income, you can compare the effects of market volatilities on Chase Growth and Income Fund 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 Income Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Income Fund.
Diversification Opportunities for Chase Growth and Income Fund
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chase and Income is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and Income Fund Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Income Fund Income 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 Income Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Income Fund Income has no effect on the direction of Chase Growth i.e., Chase Growth and Income Fund go up and down completely randomly.
Pair Corralation between Chase Growth and Income Fund
Assuming the 90 days horizon Chase Growth Fund is expected to under-perform the Income Fund. In addition to that, Chase Growth is 12.25 times more volatile than Income Fund Income. It trades about -0.21 of its total potential returns per unit of risk. Income Fund Income is currently generating about 0.07 per unit of volatility. If you would invest 1,156 in Income Fund Income on September 12, 2024 and sell it today you would earn a total of 5.00 from holding Income Fund Income or generate 0.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Chase Growth Fund vs. Income Fund Income
Performance |
| Timeline |
| Chase Growth |
| Income Fund Income |
Chase Growth and Income Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chase Growth and Income Fund
The main advantage of trading using opposite Chase Growth and Income Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth position performs unexpectedly, Income Fund 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 Income Fund will offset losses from the drop in Income Fund'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 |
| Income Fund vs. L Abbett Growth | Income Fund vs. Chase Growth Fund | Income Fund vs. T Rowe Price | Income Fund 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |