Correlation Between Chesapeake Utilities and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both Chesapeake Utilities and MCEWEN 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 MCEWEN 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 MCEWEN MINING INC, you can compare the effects of market volatilities on Chesapeake Utilities and MCEWEN 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 MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chesapeake Utilities and MCEWEN MINING.
Diversification Opportunities for Chesapeake Utilities and MCEWEN MINING
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Chesapeake and MCEWEN is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Chesapeake Utilities and MCEWEN MINING INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCEWEN MINING INC 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 MCEWEN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCEWEN MINING INC has no effect on the direction of Chesapeake Utilities i.e., Chesapeake Utilities and MCEWEN MINING go up and down completely randomly.
Pair Corralation between Chesapeake Utilities and MCEWEN MINING
Assuming the 90 days horizon Chesapeake Utilities is expected to generate 0.6 times more return on investment than MCEWEN MINING. However, Chesapeake Utilities is 1.66 times less risky than MCEWEN MINING. It trades about 0.01 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about -0.01 per unit of risk. If you would invest 11,700 in Chesapeake Utilities on November 4, 2024 and sell it today you would earn a total of 0.00 from holding Chesapeake Utilities or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Chesapeake Utilities vs. MCEWEN MINING INC
Performance |
| Timeline |
| Chesapeake Utilities |
| MCEWEN MINING INC |
Chesapeake Utilities and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chesapeake Utilities and MCEWEN MINING
The main advantage of trading using opposite Chesapeake Utilities and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chesapeake Utilities position performs unexpectedly, MCEWEN 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 MCEWEN MINING will offset losses from the drop in MCEWEN MINING's long position.| Chesapeake Utilities vs. Alliance Data Systems | Chesapeake Utilities vs. TAL Education Group | Chesapeake Utilities vs. Datadog | Chesapeake Utilities vs. Perdoceo Education |
| MCEWEN MINING vs. Harmony Gold Mining | MCEWEN MINING vs. Telecom Argentina SA | MCEWEN MINING vs. TELECOM ITALIA | MCEWEN MINING vs. SK TELECOM TDADR |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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