Correlation Between Chestnut Street and Upright Growth
Can any of the company-specific risk be diversified away by investing in both Chestnut Street and Upright 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 Chestnut Street and Upright Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chestnut Street Exchange and Upright Growth Fund, you can compare the effects of market volatilities on Chestnut Street and Upright 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 Chestnut Street with a short position of Upright Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chestnut Street and Upright Growth.
Diversification Opportunities for Chestnut Street and Upright Growth
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chestnut and Upright is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Chestnut Street Exchange and Upright Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upright Growth and Chestnut Street 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 Chestnut Street Exchange are associated (or correlated) with Upright Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upright Growth has no effect on the direction of Chestnut Street i.e., Chestnut Street and Upright Growth go up and down completely randomly.
Pair Corralation between Chestnut Street and Upright Growth
Assuming the 90 days horizon Chestnut Street Exchange is expected to generate 0.79 times more return on investment than Upright Growth. However, Chestnut Street Exchange is 1.26 times less risky than Upright Growth. It trades about 0.19 of its potential returns per unit of risk. Upright Growth Fund is currently generating about -0.16 per unit of risk. If you would invest 113,531 in Chestnut Street Exchange on August 28, 2024 and sell it today you would earn a total of 3,968 from holding Chestnut Street Exchange or generate 3.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chestnut Street Exchange vs. Upright Growth Fund
Performance |
| Timeline |
| Chestnut Street Exchange |
| Upright Growth |
Chestnut Street and Upright Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chestnut Street and Upright Growth
The main advantage of trading using opposite Chestnut Street and Upright Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chestnut Street position performs unexpectedly, Upright 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 Upright Growth will offset losses from the drop in Upright Growth's long position.| Chestnut Street vs. Fidelity Advisor Health | Chestnut Street vs. Alphacentric Lifesci Healthcare | Chestnut Street vs. Baron Health Care | Chestnut Street vs. Allianzgi Health Sciences |
| Upright Growth vs. VEEA | Upright Growth vs. VivoPower International PLC | Upright Growth vs. WEBTOON Entertainment Common | Upright Growth vs. Upright Assets Allocation |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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