Correlation Between Haier Smart and Chesapeake Utilities
Can any of the company-specific risk be diversified away by investing in both Haier Smart and Chesapeake Utilities 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 Haier Smart and Chesapeake Utilities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haier Smart Home and Chesapeake Utilities, you can compare the effects of market volatilities on Haier Smart and Chesapeake Utilities 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 Haier Smart with a short position of Chesapeake Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haier Smart and Chesapeake Utilities.
Diversification Opportunities for Haier Smart and Chesapeake Utilities
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Haier and Chesapeake is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Haier Smart Home and Chesapeake Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chesapeake Utilities and Haier Smart 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 Haier Smart Home are associated (or correlated) with Chesapeake Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chesapeake Utilities has no effect on the direction of Haier Smart i.e., Haier Smart and Chesapeake Utilities go up and down completely randomly.
Pair Corralation between Haier Smart and Chesapeake Utilities
Assuming the 90 days trading horizon Haier Smart Home is expected to generate 1.06 times more return on investment than Chesapeake Utilities. However, Haier Smart is 1.06 times more volatile than Chesapeake Utilities. It trades about 0.26 of its potential returns per unit of risk. Chesapeake Utilities is currently generating about -0.32 per unit of risk. If you would invest 171.00 in Haier Smart Home on October 12, 2024 and sell it today you would earn a total of 9.00 from holding Haier Smart Home or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haier Smart Home vs. Chesapeake Utilities
Performance |
| Timeline |
| Haier Smart Home |
| Chesapeake Utilities |
Haier Smart and Chesapeake Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haier Smart and Chesapeake Utilities
The main advantage of trading using opposite Haier Smart and Chesapeake Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haier Smart position performs unexpectedly, Chesapeake Utilities 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 Chesapeake Utilities will offset losses from the drop in Chesapeake Utilities' long position.| Haier Smart vs. American Homes 4 | Haier Smart vs. ADDUS HOMECARE | Haier Smart vs. GREENX METALS LTD | Haier Smart vs. CITY OFFICE REIT |
| Chesapeake Utilities vs. Firan Technology Group | Chesapeake Utilities vs. T MOBILE US | Chesapeake Utilities vs. T Mobile | Chesapeake Utilities vs. Zoom Video Communications |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |