Correlation Between Chase Growth and Touchstone Premium
Can any of the company-specific risk be diversified away by investing in both Chase Growth and Touchstone Premium 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 Touchstone Premium 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 Touchstone Premium Yield, you can compare the effects of market volatilities on Chase Growth and Touchstone Premium 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 Touchstone Premium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Touchstone Premium.
Diversification Opportunities for Chase Growth and Touchstone Premium
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chase and Touchstone is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and Touchstone Premium Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Premium 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 Touchstone Premium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Premium Yield has no effect on the direction of Chase Growth i.e., Chase Growth and Touchstone Premium go up and down completely randomly.
Pair Corralation between Chase Growth and Touchstone Premium
Assuming the 90 days horizon Chase Growth Fund is expected to generate 0.85 times more return on investment than Touchstone Premium. However, Chase Growth Fund is 1.17 times less risky than Touchstone Premium. It trades about 0.24 of its potential returns per unit of risk. Touchstone Premium Yield is currently generating about 0.01 per unit of risk. If you would invest 1,393 in Chase Growth Fund on May 28, 2025 and sell it today you would earn a total of 161.00 from holding Chase Growth Fund or generate 11.56% 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. Touchstone Premium Yield
Performance |
| Timeline |
| Chase Growth |
| Touchstone Premium Yield |
Chase Growth and Touchstone Premium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chase Growth and Touchstone Premium
The main advantage of trading using opposite Chase Growth and Touchstone Premium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth position performs unexpectedly, Touchstone Premium 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 Touchstone Premium will offset losses from the drop in Touchstone Premium's long position.| Chase Growth vs. Cambiar Opportunity Fund | Chase Growth vs. The Chesapeake Growth | Chase Growth vs. The Jensen Portfolio | Chase Growth vs. Aston Montag Caldwell |
| Touchstone Premium vs. John Hancock Financial | Touchstone Premium vs. Angel Oak Financial | Touchstone Premium vs. Davis Financial Fund | Touchstone Premium vs. Putnam Global Financials |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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