Correlation Between Aston Montag and Chase Growth
Can any of the company-specific risk be diversified away by investing in both Aston Montag 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 Aston Montag and Chase Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aston Montag Caldwell and Chase Growth Fund, you can compare the effects of market volatilities on Aston Montag 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 Aston Montag with a short position of Chase Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aston Montag and Chase Growth.
Diversification Opportunities for Aston Montag and Chase Growth
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aston and Chase is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Aston Montag Caldwell and Chase Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chase Growth and Aston Montag 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 Aston Montag Caldwell 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 Aston Montag i.e., Aston Montag and Chase Growth go up and down completely randomly.
Pair Corralation between Aston Montag and Chase Growth
Assuming the 90 days horizon Aston Montag is expected to generate 1.69 times less return on investment than Chase Growth. But when comparing it to its historical volatility, Aston Montag Caldwell is 1.07 times less risky than Chase Growth. It trades about 0.15 of its potential returns per unit of risk. Chase Growth Fund is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,671 in Chase Growth Fund on August 29, 2024 and sell it today you would earn a total of 91.00 from holding Chase Growth Fund or generate 5.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Aston Montag Caldwell vs. Chase Growth Fund
Performance |
| Timeline |
| Aston Montag Caldwell |
| Chase Growth |
Aston Montag and Chase Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aston Montag and Chase Growth
The main advantage of trading using opposite Aston Montag and Chase Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aston Montag 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.| Aston Montag vs. Growth Fund Of | Aston Montag vs. HUMANA INC | Aston Montag vs. Aquagold International | Aston Montag vs. Barloworld Ltd ADR |
| Chase Growth vs. Growth Fund Of | Chase Growth vs. HUMANA INC | Chase Growth vs. Aquagold International | Chase Growth vs. Barloworld Ltd ADR |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |