Correlation Between Chesapeake Utilities and Fuji Media
Can any of the company-specific risk be diversified away by investing in both Chesapeake Utilities and Fuji Media 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 Fuji Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chesapeake Utilities and Fuji Media Holdings, you can compare the effects of market volatilities on Chesapeake Utilities and Fuji Media 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 Fuji Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chesapeake Utilities and Fuji Media.
Diversification Opportunities for Chesapeake Utilities and Fuji Media
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chesapeake and Fuji is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Chesapeake Utilities and Fuji Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuji Media Holdings 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 Fuji Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuji Media Holdings has no effect on the direction of Chesapeake Utilities i.e., Chesapeake Utilities and Fuji Media go up and down completely randomly.
Pair Corralation between Chesapeake Utilities and Fuji Media
Assuming the 90 days horizon Chesapeake Utilities is expected to generate 1.01 times more return on investment than Fuji Media. However, Chesapeake Utilities is 1.01 times more volatile than Fuji Media Holdings. It trades about 0.42 of its potential returns per unit of risk. Fuji Media Holdings is currently generating about 0.11 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 | 95.45% |
| Values | Daily Returns |
Chesapeake Utilities vs. Fuji Media Holdings
Performance |
| Timeline |
| Chesapeake Utilities |
| Fuji Media Holdings |
Chesapeake Utilities and Fuji Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chesapeake Utilities and Fuji Media
The main advantage of trading using opposite Chesapeake Utilities and Fuji Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chesapeake Utilities position performs unexpectedly, Fuji Media 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 Fuji Media will offset losses from the drop in Fuji Media'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 |
| Fuji Media vs. Salesforce | Fuji Media vs. CPU SOFTWAREHOUSE | Fuji Media vs. Unity Software | Fuji Media vs. PSI Software AG |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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