Correlation Between Chesapeake Energy and I Minerals
Can any of the company-specific risk be diversified away by investing in both Chesapeake Energy and I Minerals 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 I Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chesapeake Energy and I Minerals, you can compare the effects of market volatilities on Chesapeake Energy and I Minerals 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 I Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chesapeake Energy and I Minerals.
Diversification Opportunities for Chesapeake Energy and I Minerals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chesapeake and IMAHF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chesapeake Energy and I Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Minerals 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 I Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Minerals has no effect on the direction of Chesapeake Energy i.e., Chesapeake Energy and I Minerals go up and down completely randomly.
Pair Corralation between Chesapeake Energy and I Minerals
If you would invest (100.00) in I Minerals on August 29, 2024 and sell it today you would earn a total of 100.00 from holding I Minerals or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Chesapeake Energy vs. I Minerals
Performance |
| Timeline |
| Chesapeake Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| I Minerals |
Chesapeake Energy and I Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chesapeake Energy and I Minerals
The main advantage of trading using opposite Chesapeake Energy and I Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chesapeake Energy position performs unexpectedly, I Minerals 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 I Minerals will offset losses from the drop in I Minerals' long position.| Chesapeake Energy vs. Lindblad Expeditions Holdings | Chesapeake Energy vs. KVH Industries | Chesapeake Energy vs. Skillful Craftsman Education | Chesapeake Energy vs. Old Dominion Freight |
| I Minerals vs. SNDL Inc | I Minerals vs. Helmerich and Payne | I Minerals vs. Kraft Heinz Co | I Minerals vs. Awilco Drilling PLC |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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