Correlation Between Chesapeake Growth and Chase Growth
Can any of the company-specific risk be diversified away by investing in both Chesapeake Growth and Chase Growth 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 Chesapeake Growth and Chase Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Chesapeake Growth and Chase Growth Fund, you can compare the effects of market volatilities on Chesapeake Growth and Chase Growth 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 Chesapeake Growth with a short position of Chase Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chesapeake Growth and Chase Growth.
Diversification Opportunities for Chesapeake Growth and Chase Growth
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chesapeake and Chase is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding The Chesapeake Growth and Chase Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chase Growth and Chesapeake 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 The Chesapeake Growth are associated (or correlated) with Chase Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chase Growth has no effect on the direction of Chesapeake Growth i.e., Chesapeake Growth and Chase Growth go up and down completely randomly.
Pair Corralation between Chesapeake Growth and Chase Growth
Assuming the 90 days horizon The Chesapeake Growth is expected to generate 0.14 times more return on investment than Chase Growth. However, The Chesapeake Growth is 6.91 times less risky than Chase Growth. It trades about -0.07 of its potential returns per unit of risk. Chase Growth Fund is currently generating about -0.21 per unit of risk. If you would invest 5,415 in The Chesapeake Growth on September 13, 2024 and sell it today you would lose (47.00) from holding The Chesapeake Growth or give up 0.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Chesapeake Growth vs. Chase Growth Fund
Performance |
| Timeline |
| Chesapeake Growth |
| Chase Growth |
Chesapeake Growth and Chase Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chesapeake Growth and Chase Growth
The main advantage of trading using opposite Chesapeake Growth and Chase Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chesapeake Growth position performs unexpectedly, Chase Growth 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 Chase Growth will offset losses from the drop in Chase Growth's long position.| Chesapeake Growth vs. Emerald Growth Fund | Chesapeake Growth vs. Victory Rs Partners | Chesapeake Growth vs. Hotchkis Wiley Large | Chesapeake Growth vs. Chase Growth Fund |
| Chase Growth vs. The Chesapeake Growth | Chase Growth vs. Aston Montag Caldwell | Chase Growth vs. The Jensen Portfolio | Chase Growth vs. Cambiar Opportunity Fund |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |