Correlation Between Chase Growth and Semiconductor Ultrasector
Can any of the company-specific risk be diversified away by investing in both Chase Growth and Semiconductor Ultrasector 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 Semiconductor Ultrasector 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 Semiconductor Ultrasector Profund, you can compare the effects of market volatilities on Chase Growth and Semiconductor Ultrasector 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 Semiconductor Ultrasector. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Semiconductor Ultrasector.
Diversification Opportunities for Chase Growth and Semiconductor Ultrasector
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between CHASE and Semiconductor is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and Semiconductor Ultrasector Prof in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semiconductor Ultrasector 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 Semiconductor Ultrasector. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semiconductor Ultrasector has no effect on the direction of Chase Growth i.e., Chase Growth and Semiconductor Ultrasector go up and down completely randomly.
Pair Corralation between Chase Growth and Semiconductor Ultrasector
Assuming the 90 days horizon Chase Growth is expected to generate 3.04 times less return on investment than Semiconductor Ultrasector. But when comparing it to its historical volatility, Chase Growth Fund is 2.7 times less risky than Semiconductor Ultrasector. It trades about 0.18 of its potential returns per unit of risk. Semiconductor Ultrasector Profund is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 4,104 in Semiconductor Ultrasector Profund on June 4, 2025 and sell it today you would earn a total of 1,141 from holding Semiconductor Ultrasector Profund or generate 27.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chase Growth Fund vs. Semiconductor Ultrasector Prof
Performance |
| Timeline |
| Chase Growth |
| Semiconductor Ultrasector |
Chase Growth and Semiconductor Ultrasector Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chase Growth and Semiconductor Ultrasector
The main advantage of trading using opposite Chase Growth and Semiconductor Ultrasector positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth position performs unexpectedly, Semiconductor Ultrasector 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 Semiconductor Ultrasector will offset losses from the drop in Semiconductor Ultrasector's long position.| Chase Growth vs. American Funds The | Chase Growth vs. American Funds The | Chase Growth vs. Growth Fund Of | Chase Growth vs. Growth Fund Of |
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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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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