Correlation Between Chesapeake Energy and Steven Madden
Can any of the company-specific risk be diversified away by investing in both Chesapeake Energy and Steven Madden 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 Steven Madden into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chesapeake Energy and Steven Madden, you can compare the effects of market volatilities on Chesapeake Energy and Steven Madden 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 Steven Madden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chesapeake Energy and Steven Madden.
Diversification Opportunities for Chesapeake Energy and Steven Madden
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chesapeake and Steven is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Chesapeake Energy and Steven Madden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steven Madden 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 Steven Madden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steven Madden has no effect on the direction of Chesapeake Energy i.e., Chesapeake Energy and Steven Madden go up and down completely randomly.
Pair Corralation between Chesapeake Energy and Steven Madden
If you would invest 6,404 in Chesapeake Energy on September 13, 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. Steven Madden
Performance |
| Timeline |
| Chesapeake Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Strong
| Steven Madden |
Chesapeake Energy and Steven Madden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chesapeake Energy and Steven Madden
The main advantage of trading using opposite Chesapeake Energy and Steven Madden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chesapeake Energy position performs unexpectedly, Steven Madden 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 Steven Madden will offset losses from the drop in Steven Madden's long position.| Chesapeake Energy vs. Jabil Circuit | Chesapeake Energy vs. Sonos Inc | Chesapeake Energy vs. NETGEAR | Chesapeake Energy vs. Monster Beverage Corp |
| Steven Madden vs. Deckers Outdoor | Steven Madden vs. On Holding | Steven Madden vs. Skechers USA | Steven Madden vs. Crocs Inc |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |