Correlation Between Chesapeake Utilities and AVNEL GOLD
Can any of the company-specific risk be diversified away by investing in both Chesapeake Utilities and AVNEL GOLD 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 AVNEL GOLD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chesapeake Utilities and AVNEL GOLD MINING, you can compare the effects of market volatilities on Chesapeake Utilities and AVNEL GOLD 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 AVNEL GOLD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chesapeake Utilities and AVNEL GOLD.
Diversification Opportunities for Chesapeake Utilities and AVNEL GOLD
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chesapeake and AVNEL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chesapeake Utilities and AVNEL GOLD MINING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVNEL GOLD MINING 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 AVNEL GOLD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVNEL GOLD MINING has no effect on the direction of Chesapeake Utilities i.e., Chesapeake Utilities and AVNEL GOLD go up and down completely randomly.
Pair Corralation between Chesapeake Utilities and AVNEL GOLD
If you would invest 11,800 in Chesapeake Utilities on September 13, 2024 and sell it today you would earn a total of 300.00 from holding Chesapeake Utilities or generate 2.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Chesapeake Utilities vs. AVNEL GOLD MINING
Performance |
| Timeline |
| Chesapeake Utilities |
| AVNEL GOLD MINING |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Chesapeake Utilities and AVNEL GOLD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chesapeake Utilities and AVNEL GOLD
The main advantage of trading using opposite Chesapeake Utilities and AVNEL GOLD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chesapeake Utilities position performs unexpectedly, AVNEL GOLD 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 AVNEL GOLD will offset losses from the drop in AVNEL GOLD's long position.| Chesapeake Utilities vs. Naturgy Energy Group | Chesapeake Utilities vs. CenterPoint Energy | Chesapeake Utilities vs. Snam SpA | Chesapeake Utilities vs. ENN Energy Holdings |
| AVNEL GOLD vs. Arrow Electronics | AVNEL GOLD vs. Electronic Arts | AVNEL GOLD vs. Samsung Electronics Co | AVNEL GOLD vs. NEWELL RUBBERMAID |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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