Correlation Between Chesapeake Utilities and MICRONIC MYDATA
Can any of the company-specific risk be diversified away by investing in both Chesapeake Utilities and MICRONIC MYDATA 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 MICRONIC MYDATA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chesapeake Utilities and MICRONIC MYDATA, you can compare the effects of market volatilities on Chesapeake Utilities and MICRONIC MYDATA 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 MICRONIC MYDATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chesapeake Utilities and MICRONIC MYDATA.
Diversification Opportunities for Chesapeake Utilities and MICRONIC MYDATA
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Chesapeake and MICRONIC is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Chesapeake Utilities and MICRONIC MYDATA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MICRONIC MYDATA 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 MICRONIC MYDATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MICRONIC MYDATA has no effect on the direction of Chesapeake Utilities i.e., Chesapeake Utilities and MICRONIC MYDATA go up and down completely randomly.
Pair Corralation between Chesapeake Utilities and MICRONIC MYDATA
Assuming the 90 days horizon Chesapeake Utilities is expected to generate 0.61 times more return on investment than MICRONIC MYDATA. However, Chesapeake Utilities is 1.64 times less risky than MICRONIC MYDATA. It trades about 0.12 of its potential returns per unit of risk. MICRONIC MYDATA is currently generating about -0.01 per unit of risk. If you would invest 10,079 in Chesapeake Utilities on September 1, 2024 and sell it today you would earn a total of 2,221 from holding Chesapeake Utilities or generate 22.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chesapeake Utilities vs. MICRONIC MYDATA
Performance |
| Timeline |
| Chesapeake Utilities |
| MICRONIC MYDATA |
Chesapeake Utilities and MICRONIC MYDATA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chesapeake Utilities and MICRONIC MYDATA
The main advantage of trading using opposite Chesapeake Utilities and MICRONIC MYDATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chesapeake Utilities position performs unexpectedly, MICRONIC MYDATA 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 MICRONIC MYDATA will offset losses from the drop in MICRONIC MYDATA's long position.| Chesapeake Utilities vs. Coeur Mining | Chesapeake Utilities vs. Check Point Software | Chesapeake Utilities vs. PKSHA TECHNOLOGY INC | Chesapeake Utilities vs. Vishay Intertechnology |
| MICRONIC MYDATA vs. SIVERS SEMICONDUCTORS AB | MICRONIC MYDATA vs. Darden Restaurants | MICRONIC MYDATA vs. Reliance Steel Aluminum | MICRONIC MYDATA vs. Q2M Managementberatung 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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