Correlation Between Chase Growth and Stocksplus Total

Can any of the company-specific risk be diversified away by investing in both Chase Growth and Stocksplus Total 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 Stocksplus Total 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 Stocksplus Total Return, you can compare the effects of market volatilities on Chase Growth and Stocksplus Total 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 Stocksplus Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and Stocksplus Total.

Diversification Opportunities for Chase Growth and Stocksplus Total

0.69

Correlation Coefficient

Chase Growth  Stocksplus Total

Poor diversification

The 3 months correlation between Chase and Stocksplus is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and Stocksplus Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stocksplus Total Return 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 Stocksplus Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stocksplus Total Return has no effect on the direction of Chase Growth i.e., Chase Growth and Stocksplus Total go up and down completely randomly.

Pair Corralation between Chase Growth and Stocksplus Total

Assuming the 90 days horizon Chase Growth Fund is expected to generate 1.1 times more return on investment than Stocksplus Total. However, Chase Growth is 1.1 times more volatile than Stocksplus Total Return. It trades about 0.24 of its potential returns per unit of risk. Stocksplus Total Return is currently generating about 0.23 per unit of risk. If you would invest  1,399  in Chase Growth Fund on May 18, 2025 and sell it today you would earn a total of  172.00  from holding Chase Growth Fund or generate 12.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

Chase Growth Fund  vs.  Stocksplus Total Return

Chase Growth

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Chase Growth Fund are ranked lower than 19 (%) 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 September 2025.

Stocksplus Total Return

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Stocksplus Total Return are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Stocksplus Total may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Chase Growth and Stocksplus Total

The main advantage of trading using opposite Chase Growth and Stocksplus Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth position performs unexpectedly, Stocksplus Total 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 Stocksplus Total will offset losses from the drop in Stocksplus Total's long position.

The idea behind Chase Growth Fund and Stocksplus Total Return 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.

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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.