Correlation Between Chesapeake Energy and Chase
Can any of the company-specific risk be diversified away by investing in both Chesapeake Energy and Chase 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 Energy and Chase into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chesapeake Energy and Chase, you can compare the effects of market volatilities on Chesapeake Energy and Chase 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 Energy with a short position of Chase. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chesapeake Energy and Chase.
Diversification Opportunities for Chesapeake Energy and Chase
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chesapeake and Chase is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Chesapeake Energy and Chase in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chase and Chesapeake Energy 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 Energy are associated (or correlated) with Chase. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chase has no effect on the direction of Chesapeake Energy i.e., Chesapeake Energy and Chase go up and down completely randomly.
Pair Corralation between Chesapeake Energy and Chase
If you would invest 12,576 in Chase on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Chase or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chesapeake Energy vs. Chase
Performance |
| Timeline |
| Chesapeake Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Chase |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Chesapeake Energy and Chase Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chesapeake Energy and Chase
The main advantage of trading using opposite Chesapeake Energy and Chase positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chesapeake Energy position performs unexpectedly, Chase 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 Chase will offset losses from the drop in Chase's long position.| Chesapeake Energy vs. NGL Energy Partners | Chesapeake Energy vs. Global Partners LP | Chesapeake Energy vs. Crescent Energy Co |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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