Correlation Between Chase Growth and Valic Company
Can any of the company-specific risk be diversified away by investing in both Chase Growth and Valic Company 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 Valic Company 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 Valic Company I, you can compare the effects of market volatilities on Chase Growth and Valic Company 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 Valic Company. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Valic Company.
Diversification Opportunities for Chase Growth and Valic Company
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chase and Valic is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and Valic Company I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valic Company I 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 Valic Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valic Company I has no effect on the direction of Chase Growth i.e., Chase Growth and Valic Company go up and down completely randomly.
Pair Corralation between Chase Growth and Valic Company
Assuming the 90 days horizon Chase Growth Fund is expected to generate 2.09 times more return on investment than Valic Company. However, Chase Growth is 2.09 times more volatile than Valic Company I. It trades about 0.25 of its potential returns per unit of risk. Valic Company I is currently generating about 0.16 per unit of risk. If you would invest 1,668 in Chase Growth Fund on August 31, 2024 and sell it today you would earn a total of 94.00 from holding Chase Growth Fund or generate 5.64% 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. Valic Company I
Performance |
| Timeline |
| Chase Growth |
| Valic Company I |
Chase Growth and Valic Company Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chase Growth and Valic Company
The main advantage of trading using opposite Chase Growth and Valic Company positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth position performs unexpectedly, Valic Company 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 Valic Company will offset losses from the drop in Valic Company's long position.| Chase Growth vs. Europacific Growth Fund | Chase Growth vs. Washington Mutual Investors | Chase Growth vs. Capital World Growth | Chase Growth vs. HUMANA INC |
| Valic Company vs. Nationwide Growth Fund | Valic Company vs. Chase Growth Fund | Valic Company vs. Eip Growth And | Valic Company vs. Small Midcap Dividend Income |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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