Correlation Between Chesapeake Utilities and CHINA TONTINE
Can any of the company-specific risk be diversified away by investing in both Chesapeake Utilities and CHINA TONTINE 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 CHINA TONTINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chesapeake Utilities and CHINA TONTINE WINES, you can compare the effects of market volatilities on Chesapeake Utilities and CHINA TONTINE 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 CHINA TONTINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chesapeake Utilities and CHINA TONTINE.
Diversification Opportunities for Chesapeake Utilities and CHINA TONTINE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chesapeake and CHINA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chesapeake Utilities and CHINA TONTINE WINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA TONTINE WINES 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 CHINA TONTINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA TONTINE WINES has no effect on the direction of Chesapeake Utilities i.e., Chesapeake Utilities and CHINA TONTINE go up and down completely randomly.
Pair Corralation between Chesapeake Utilities and CHINA TONTINE
If you would invest 10,079 in Chesapeake Utilities on August 31, 2024 and sell it today you would earn a total of 2,321 from holding Chesapeake Utilities or generate 23.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chesapeake Utilities vs. CHINA TONTINE WINES
Performance |
| Timeline |
| Chesapeake Utilities |
| CHINA TONTINE WINES |
Chesapeake Utilities and CHINA TONTINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chesapeake Utilities and CHINA TONTINE
The main advantage of trading using opposite Chesapeake Utilities and CHINA TONTINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chesapeake Utilities position performs unexpectedly, CHINA TONTINE 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 CHINA TONTINE will offset losses from the drop in CHINA TONTINE's long position.| Chesapeake Utilities vs. CenterPoint Energy | Chesapeake Utilities vs. Snam SpA | Chesapeake Utilities vs. ENN Energy Holdings | Chesapeake Utilities vs. Superior Plus Corp |
| CHINA TONTINE vs. ANDREW PELLER LTD | CHINA TONTINE vs. NAKED WINES PLC | CHINA TONTINE vs. Superior Plus Corp | CHINA TONTINE vs. NMI Holdings |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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