Correlation Between Chesapeake Utilities and HYBRIGENICS
Can any of the company-specific risk be diversified away by investing in both Chesapeake Utilities and HYBRIGENICS 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 Chesapeake Utilities and HYBRIGENICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chesapeake Utilities and HYBRIGENICS A , you can compare the effects of market volatilities on Chesapeake Utilities and HYBRIGENICS 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 Chesapeake Utilities with a short position of HYBRIGENICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chesapeake Utilities and HYBRIGENICS.
Diversification Opportunities for Chesapeake Utilities and HYBRIGENICS
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chesapeake and HYBRIGENICS is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Chesapeake Utilities and HYBRIGENICS A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYBRIGENICS A and Chesapeake Utilities 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 Chesapeake Utilities are associated (or correlated) with HYBRIGENICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYBRIGENICS A has no effect on the direction of Chesapeake Utilities i.e., Chesapeake Utilities and HYBRIGENICS go up and down completely randomly.
Pair Corralation between Chesapeake Utilities and HYBRIGENICS
Assuming the 90 days horizon Chesapeake Utilities is expected to generate 0.16 times more return on investment than HYBRIGENICS. However, Chesapeake Utilities is 6.07 times less risky than HYBRIGENICS. It trades about 0.02 of its potential returns per unit of risk. HYBRIGENICS A is currently generating about 0.0 per unit of risk. If you would invest 10,676 in Chesapeake Utilities on September 12, 2024 and sell it today you would earn a total of 1,424 from holding Chesapeake Utilities or generate 13.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chesapeake Utilities vs. HYBRIGENICS A
Performance |
| Timeline |
| Chesapeake Utilities |
| HYBRIGENICS A |
Chesapeake Utilities and HYBRIGENICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chesapeake Utilities and HYBRIGENICS
The main advantage of trading using opposite Chesapeake Utilities and HYBRIGENICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chesapeake Utilities position performs unexpectedly, HYBRIGENICS 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 HYBRIGENICS will offset losses from the drop in HYBRIGENICS's long position.| Chesapeake Utilities vs. AIR PRODCHEMICALS | Chesapeake Utilities vs. National Storage Affiliates | Chesapeake Utilities vs. SHIN ETSU CHEMICAL | Chesapeake Utilities vs. X FAB Silicon Foundries |
| HYBRIGENICS vs. Chiba Bank | HYBRIGENICS vs. Chesapeake Utilities | HYBRIGENICS vs. VIRG NATL BANKSH | HYBRIGENICS vs. COMINTL BANK ADR1 |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |