Correlation Between Chesapeake Energy and Gold
Can any of the company-specific risk be diversified away by investing in both Chesapeake Energy and Gold 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 Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chesapeake Energy and Gold And Gemstone, you can compare the effects of market volatilities on Chesapeake Energy and Gold 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 Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chesapeake Energy and Gold.
Diversification Opportunities for Chesapeake Energy and Gold
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chesapeake and Gold is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Chesapeake Energy and Gold And Gemstone in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold And Gemstone 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 Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold And Gemstone has no effect on the direction of Chesapeake Energy i.e., Chesapeake Energy and Gold go up and down completely randomly.
Pair Corralation between Chesapeake Energy and Gold
If you would invest 6,250 in Chesapeake Energy on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Chesapeake Energy or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Chesapeake Energy vs. Gold And Gemstone
Performance |
| Timeline |
| Chesapeake Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Gold And Gemstone |
Chesapeake Energy and Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chesapeake Energy and Gold
The main advantage of trading using opposite Chesapeake Energy and Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chesapeake Energy position performs unexpectedly, Gold 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 Gold will offset losses from the drop in Gold's long position.| Chesapeake Energy vs. NGL Energy Partners | Chesapeake Energy vs. Global Partners LP | Chesapeake Energy vs. Crescent Energy Co |
| Gold vs. Silver Hammer Mining | Gold vs. Reyna Silver Corp | Gold vs. Guanajuato Silver | Gold vs. Silver One Resources |
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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