Correlation Between Chase Growth and Siit High
Can any of the company-specific risk be diversified away by investing in both Chase Growth and Siit High 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 Chase Growth and Siit High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chase Growth Fund and Siit High Yield, you can compare the effects of market volatilities on Chase Growth and Siit High 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 Chase Growth with a short position of Siit High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Siit High.
Diversification Opportunities for Chase Growth and Siit High
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Chase and Siit is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and Siit High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit High Yield and Chase Growth 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 Chase Growth Fund are associated (or correlated) with Siit High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit High Yield has no effect on the direction of Chase Growth i.e., Chase Growth and Siit High go up and down completely randomly.
Pair Corralation between Chase Growth and Siit High
Assuming the 90 days horizon Chase Growth Fund is expected to generate 3.7 times more return on investment than Siit High. However, Chase Growth is 3.7 times more volatile than Siit High Yield. It trades about 0.06 of its potential returns per unit of risk. Siit High Yield is currently generating about 0.11 per unit of risk. If you would invest 1,023 in Chase Growth Fund on September 26, 2024 and sell it today you would earn a total of 429.00 from holding Chase Growth Fund or generate 41.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Chase Growth Fund vs. Siit High Yield
Performance |
Timeline |
Chase Growth |
Siit High Yield |
Chase Growth and Siit High Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chase Growth and Siit High
The main advantage of trading using opposite Chase Growth and Siit High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth position performs unexpectedly, Siit High 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 Siit High will offset losses from the drop in Siit High's long position.Chase Growth vs. The Chesapeake Growth | Chase Growth vs. Aston Montag Caldwell | Chase Growth vs. The Jensen Portfolio | Chase Growth vs. Cambiar Opportunity Fund |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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