Correlation Between Chase Growth and Vanguard Extended
Can any of the company-specific risk be diversified away by investing in both Chase Growth and Vanguard Extended 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 Vanguard Extended 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 Vanguard Extended Market, you can compare the effects of market volatilities on Chase Growth and Vanguard Extended 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 Vanguard Extended. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Vanguard Extended.
Diversification Opportunities for Chase Growth and Vanguard Extended
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chase and Vanguard is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and Vanguard Extended Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Extended Market 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 Vanguard Extended. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Extended Market has no effect on the direction of Chase Growth i.e., Chase Growth and Vanguard Extended go up and down completely randomly.
Pair Corralation between Chase Growth and Vanguard Extended
Assuming the 90 days horizon Chase Growth Fund is expected to generate 0.86 times more return on investment than Vanguard Extended. However, Chase Growth Fund is 1.17 times less risky than Vanguard Extended. It trades about 0.1 of its potential returns per unit of risk. Vanguard Extended Market is currently generating about 0.08 per unit of risk. If you would invest 1,120 in Chase Growth Fund on August 30, 2024 and sell it today you would earn a total of 655.00 from holding Chase Growth Fund or generate 58.48% 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. Vanguard Extended Market
Performance |
| Timeline |
| Chase Growth |
| Vanguard Extended Market |
Chase Growth and Vanguard Extended Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chase Growth and Vanguard Extended
The main advantage of trading using opposite Chase Growth and Vanguard Extended positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth position performs unexpectedly, Vanguard Extended 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 Vanguard Extended will offset losses from the drop in Vanguard Extended'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 |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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