Correlation Between Jensen Portfolio and Chase Growth
Can any of the company-specific risk be diversified away by investing in both Jensen Portfolio 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 Jensen Portfolio 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 Jensen Portfolio and Chase Growth Fund, you can compare the effects of market volatilities on Jensen Portfolio 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 Jensen Portfolio with a short position of Chase Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jensen Portfolio and Chase Growth.
Diversification Opportunities for Jensen Portfolio and Chase Growth
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jensen and Chase is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding The Jensen Portfolio and Chase Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chase Growth and Jensen Portfolio 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 Jensen Portfolio 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 Jensen Portfolio i.e., Jensen Portfolio and Chase Growth go up and down completely randomly.
Pair Corralation between Jensen Portfolio and Chase Growth
Assuming the 90 days horizon The Jensen Portfolio is expected to generate 0.39 times more return on investment than Chase Growth. However, The Jensen Portfolio is 2.56 times less risky than Chase Growth. It trades about 0.32 of its potential returns per unit of risk. Chase Growth Fund is currently generating about 0.05 per unit of risk. If you would invest 5,816 in The Jensen Portfolio on November 7, 2024 and sell it today you would earn a total of 219.00 from holding The Jensen Portfolio or generate 3.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
The Jensen Portfolio vs. Chase Growth Fund
Performance |
| Timeline |
| Jensen Portfolio |
| Chase Growth |
Jensen Portfolio and Chase Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jensen Portfolio and Chase Growth
The main advantage of trading using opposite Jensen Portfolio and Chase Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jensen Portfolio 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.| Jensen Portfolio vs. Clipper Fund Inc | Jensen Portfolio vs. Parnassus E Equity | Jensen Portfolio vs. Mairs Power Growth | Jensen Portfolio vs. Sound Shore 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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