Correlation Between Chesapeake Utilities and CTS Eventim
Can any of the company-specific risk be diversified away by investing in both Chesapeake Utilities and CTS Eventim 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 CTS Eventim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chesapeake Utilities and CTS Eventim AG, you can compare the effects of market volatilities on Chesapeake Utilities and CTS Eventim 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 CTS Eventim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chesapeake Utilities and CTS Eventim.
Diversification Opportunities for Chesapeake Utilities and CTS Eventim
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chesapeake and CTS is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Chesapeake Utilities and CTS Eventim AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTS Eventim AG 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 CTS Eventim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTS Eventim AG has no effect on the direction of Chesapeake Utilities i.e., Chesapeake Utilities and CTS Eventim go up and down completely randomly.
Pair Corralation between Chesapeake Utilities and CTS Eventim
Assuming the 90 days horizon Chesapeake Utilities is expected to generate 0.57 times more return on investment than CTS Eventim. However, Chesapeake Utilities is 1.75 times less risky than CTS Eventim. It trades about 0.42 of its potential returns per unit of risk. CTS Eventim AG is currently generating about -0.15 per unit of risk. If you would invest 10,700 in Chesapeake Utilities on September 4, 2024 and sell it today you would earn a total of 1,900 from holding Chesapeake Utilities or generate 17.76% 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. CTS Eventim AG
Performance |
| Timeline |
| Chesapeake Utilities |
| CTS Eventim AG |
Chesapeake Utilities and CTS Eventim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chesapeake Utilities and CTS Eventim
The main advantage of trading using opposite Chesapeake Utilities and CTS Eventim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chesapeake Utilities position performs unexpectedly, CTS Eventim 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 CTS Eventim will offset losses from the drop in CTS Eventim's long position.| Chesapeake Utilities vs. National Beverage Corp | Chesapeake Utilities vs. PREMIER FOODS | Chesapeake Utilities vs. Fevertree Drinks PLC | Chesapeake Utilities vs. MOLSON RS BEVERAGE |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |