Correlation Between Chase Growth and Sierra Strategic
Can any of the company-specific risk be diversified away by investing in both Chase Growth and Sierra Strategic 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 Sierra Strategic 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 Sierra Strategic Income, you can compare the effects of market volatilities on Chase Growth and Sierra Strategic 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 Sierra Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Sierra Strategic.
Diversification Opportunities for Chase Growth and Sierra Strategic
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chase and Sierra is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and Sierra Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sierra Strategic Income 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 Sierra Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sierra Strategic Income has no effect on the direction of Chase Growth i.e., Chase Growth and Sierra Strategic go up and down completely randomly.
Pair Corralation between Chase Growth and Sierra Strategic
Assuming the 90 days horizon Chase Growth Fund is expected to under-perform the Sierra Strategic. In addition to that, Chase Growth is 15.15 times more volatile than Sierra Strategic Income. It trades about -0.16 of its total potential returns per unit of risk. Sierra Strategic Income is currently generating about 0.0 per unit of volatility. If you would invest 2,013 in Sierra Strategic Income on December 4, 2024 and sell it today you would earn a total of 0.00 from holding Sierra Strategic Income or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Chase Growth Fund vs. Sierra Strategic Income
Performance |
Timeline |
Chase Growth |
Sierra Strategic Income |
Chase Growth and Sierra Strategic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chase Growth and Sierra Strategic
The main advantage of trading using opposite Chase Growth and Sierra Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth position performs unexpectedly, Sierra Strategic 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 Sierra Strategic will offset losses from the drop in Sierra Strategic'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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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