Correlation Between Monetta Fund and Chase Growth

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Can any of the company-specific risk be diversified away by investing in both Monetta Fund 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 Monetta Fund and Chase Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monetta Fund Monetta and Chase Growth Fund, you can compare the effects of market volatilities on Monetta Fund 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 Monetta Fund with a short position of Chase Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monetta Fund and Chase Growth.

Diversification Opportunities for Monetta Fund and Chase Growth

0.93
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Monetta and Chase is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Monetta Fund Monetta and Chase Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chase Growth and Monetta Fund 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 Monetta Fund Monetta 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 Monetta Fund i.e., Monetta Fund and Chase Growth go up and down completely randomly.

Pair Corralation between Monetta Fund and Chase Growth

Assuming the 90 days horizon Monetta Fund is expected to generate 2.41 times less return on investment than Chase Growth. In addition to that, Monetta Fund is 1.13 times more volatile than Chase Growth Fund. It trades about 0.04 of its total potential returns per unit of risk. Chase Growth Fund is currently generating about 0.12 per unit of volatility. If you would invest  1,581  in Chase Growth Fund on August 13, 2025 and sell it today you would earn a total of  111.00  from holding Chase Growth Fund or generate 7.02% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Monetta Fund Monetta  vs.  Chase Growth Fund

 Performance 
       Timeline  
Monetta Fund Monetta 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Monetta Fund Monetta are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Monetta Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Chase Growth 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Chase Growth Fund are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Chase Growth may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Monetta Fund and Chase Growth Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Monetta Fund and Chase Growth

The main advantage of trading using opposite Monetta Fund and Chase Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monetta Fund 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.
The idea behind Monetta Fund Monetta and Chase Growth Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

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