Correlation Between Beijing Gas and Chesapeake Utilities
Can any of the company-specific risk be diversified away by investing in both Beijing Gas 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 Beijing Gas and Chesapeake Utilities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beijing Gas Blue and Chesapeake Utilities, you can compare the effects of market volatilities on Beijing Gas 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 Beijing Gas with a short position of Chesapeake Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Gas and Chesapeake Utilities.
Diversification Opportunities for Beijing Gas and Chesapeake Utilities
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beijing and Chesapeake is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Gas Blue and Chesapeake Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chesapeake Utilities and Beijing Gas 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 Beijing Gas Blue 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 Beijing Gas i.e., Beijing Gas and Chesapeake Utilities go up and down completely randomly.
Pair Corralation between Beijing Gas and Chesapeake Utilities
If you would invest 12,135 in Chesapeake Utilities on November 1, 2024 and sell it today you would earn a total of 220.00 from holding Chesapeake Utilities or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Gas Blue vs. Chesapeake Utilities
Performance |
| Timeline |
| Beijing Gas Blue |
| Chesapeake Utilities |
Beijing Gas and Chesapeake Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Gas and Chesapeake Utilities
The main advantage of trading using opposite Beijing Gas and Chesapeake Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Gas 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.| Beijing Gas vs. ENN Energy Holdings | Beijing Gas vs. EverGen Infrastructure Corp | Beijing Gas vs. OPAL Fuels | Beijing Gas vs. Atmos Energy |
| Chesapeake Utilities vs. Northwest Natural Gas | Chesapeake Utilities vs. One Gas | Chesapeake Utilities vs. NewJersey Resources | Chesapeake Utilities vs. Spire Inc |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |