Correlation Between Chesapeake Utilities and GALENA MINING
Can any of the company-specific risk be diversified away by investing in both Chesapeake Utilities and GALENA MINING 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 GALENA MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chesapeake Utilities and GALENA MINING LTD, you can compare the effects of market volatilities on Chesapeake Utilities and GALENA MINING 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 GALENA MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chesapeake Utilities and GALENA MINING.
Diversification Opportunities for Chesapeake Utilities and GALENA MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chesapeake and GALENA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chesapeake Utilities and GALENA MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GALENA MINING LTD 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 GALENA MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GALENA MINING LTD has no effect on the direction of Chesapeake Utilities i.e., Chesapeake Utilities and GALENA MINING go up and down completely randomly.
Pair Corralation between Chesapeake Utilities and GALENA MINING
If you would invest 3.05 in GALENA MINING LTD on October 27, 2024 and sell it today you would earn a total of 0.00 from holding GALENA MINING LTD or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Chesapeake Utilities vs. GALENA MINING LTD
Performance |
| Timeline |
| Chesapeake Utilities |
| GALENA MINING LTD |
Chesapeake Utilities and GALENA MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chesapeake Utilities and GALENA MINING
The main advantage of trading using opposite Chesapeake Utilities and GALENA MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chesapeake Utilities position performs unexpectedly, GALENA MINING 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 GALENA MINING will offset losses from the drop in GALENA MINING's long position.| Chesapeake Utilities vs. Cass Information Systems | Chesapeake Utilities vs. VIRGIN WINES UK | Chesapeake Utilities vs. UNIVMUSIC GRPADR050 | Chesapeake Utilities vs. Pure Storage |
| GALENA MINING vs. Rio Tinto Group | GALENA MINING vs. Anglo American plc | GALENA MINING vs. Mineral Resources Limited | GALENA MINING vs. NEXA RESOURCES SA |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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