Correlation Between Chubb and Consilium Acquisition
Can any of the company-specific risk be diversified away by investing in both Chubb and Consilium Acquisition 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 Chubb and Consilium Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chubb and Consilium Acquisition I, you can compare the effects of market volatilities on Chubb and Consilium Acquisition 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 Chubb with a short position of Consilium Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chubb and Consilium Acquisition.
Diversification Opportunities for Chubb and Consilium Acquisition
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chubb and Consilium is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Chubb and Consilium Acquisition I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consilium Acquisition and Chubb 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 Chubb are associated (or correlated) with Consilium Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consilium Acquisition has no effect on the direction of Chubb i.e., Chubb and Consilium Acquisition go up and down completely randomly.
Pair Corralation between Chubb and Consilium Acquisition
Allowing for the 90-day total investment horizon Chubb is expected to under-perform the Consilium Acquisition. But the stock apears to be less risky and, when comparing its historical volatility, Chubb is 1.56 times less risky than Consilium Acquisition. The stock trades about -0.09 of its potential returns per unit of risk. The Consilium Acquisition I is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,169 in Consilium Acquisition I on October 23, 2024 and sell it today you would earn a total of 108.00 from holding Consilium Acquisition I or generate 9.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chubb vs. Consilium Acquisition I
Performance |
| Timeline |
| Chubb |
| Consilium Acquisition |
Chubb and Consilium Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chubb and Consilium Acquisition
The main advantage of trading using opposite Chubb and Consilium Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chubb position performs unexpectedly, Consilium Acquisition 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 Consilium Acquisition will offset losses from the drop in Consilium Acquisition's long position.| Chubb vs. Cincinnati Financial | Chubb vs. Aflac Incorporated | Chubb vs. Dover | Chubb vs. Franklin Resources |
| Consilium Acquisition vs. Semtech | Consilium Acquisition vs. Micron Technology | Consilium Acquisition vs. Analog Devices | Consilium Acquisition vs. ASML Holding NV |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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