Correlation Between Siit Global and Chase Growth
Can any of the company-specific risk be diversified away by investing in both Siit Global 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 Siit Global and Chase Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Global Managed and Chase Growth Fund, you can compare the effects of market volatilities on Siit Global 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 Siit Global with a short position of Chase Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Global and Chase Growth.
Diversification Opportunities for Siit Global and Chase Growth
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Siit and Chase is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Siit Global Managed and Chase Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chase Growth and Siit Global 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 Siit Global Managed 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 Siit Global i.e., Siit Global and Chase Growth go up and down completely randomly.
Pair Corralation between Siit Global and Chase Growth
Assuming the 90 days horizon Siit Global is expected to generate 1.86 times less return on investment than Chase Growth. But when comparing it to its historical volatility, Siit Global Managed is 2.38 times less risky than Chase Growth. It trades about 0.09 of its potential returns per unit of risk. Chase Growth Fund is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,122 in Chase Growth Fund on September 14, 2024 and sell it today you would earn a total of 509.00 from holding Chase Growth Fund or generate 45.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Global Managed vs. Chase Growth Fund
Performance |
| Timeline |
| Siit Global Managed |
| Chase Growth |
Siit Global and Chase Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Global and Chase Growth
The main advantage of trading using opposite Siit Global and Chase Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Global 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.| Siit Global vs. Simt Multi Asset Accumulation | Siit Global vs. Saat Market Growth | Siit Global vs. Simt Real Return | Siit Global vs. Simt Small Cap |
| Chase Growth vs. Pace High Yield | Chase Growth vs. Ishares Municipal Bond | Chase Growth vs. T Rowe Price | Chase Growth vs. Dreyfusstandish Global Fixed |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |