Correlation Between State Street and Chase Growth
Can any of the company-specific risk be diversified away by investing in both State Street 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 State Street and Chase Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Street Target and Chase Growth Fund, you can compare the effects of market volatilities on State Street 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 State Street with a short position of Chase Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Street and Chase Growth.
Diversification Opportunities for State Street and Chase Growth
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between State and Chase is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding State Street Target and Chase Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chase Growth and State 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 State Street Target 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 State Street i.e., State Street and Chase Growth go up and down completely randomly.
Pair Corralation between State Street and Chase Growth
Assuming the 90 days horizon State Street is expected to generate 2.18 times less return on investment than Chase Growth. But when comparing it to its historical volatility, State Street Target is 2.17 times less risky than Chase Growth. It trades about 0.1 of its potential returns per unit of risk. Chase Growth Fund is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,120 in Chase Growth Fund on August 30, 2024 and sell it today you would earn a total of 642.00 from holding Chase Growth Fund or generate 57.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Street Target vs. Chase Growth Fund
Performance |
| Timeline |
| State Street Target |
| Chase Growth |
State Street and Chase Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Street and Chase Growth
The main advantage of trading using opposite State Street and Chase Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Street 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.| State Street vs. Versatile Bond Portfolio | State Street vs. Dreyfusstandish Global Fixed | State Street vs. Multisector Bond Sma | State Street vs. California Bond Fund |
| 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |