Correlation Between Chesapeake Energy and Serabi Gold
Can any of the company-specific risk be diversified away by investing in both Chesapeake Energy and Serabi 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 Serabi 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 Serabi Gold PLC, you can compare the effects of market volatilities on Chesapeake Energy and Serabi 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 Serabi Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chesapeake Energy and Serabi Gold.
Diversification Opportunities for Chesapeake Energy and Serabi Gold
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chesapeake and Serabi is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Chesapeake Energy and Serabi Gold PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Serabi Gold PLC 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 Serabi Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Serabi Gold PLC has no effect on the direction of Chesapeake Energy i.e., Chesapeake Energy and Serabi Gold go up and down completely randomly.
Pair Corralation between Chesapeake Energy and Serabi Gold
If you would invest 6,404 in Chesapeake Energy on September 2, 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 Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Chesapeake Energy vs. Serabi Gold PLC
Performance |
| Timeline |
| Chesapeake Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Serabi Gold PLC |
Chesapeake Energy and Serabi Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chesapeake Energy and Serabi Gold
The main advantage of trading using opposite Chesapeake Energy and Serabi Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chesapeake Energy position performs unexpectedly, Serabi 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 Serabi Gold will offset losses from the drop in Serabi Gold's long position.| Chesapeake Energy vs. Sphere Entertainment Co | Chesapeake Energy vs. Morgan Stanley | Chesapeake Energy vs. Nasdaq Inc | Chesapeake Energy vs. Alvarium Tiedemann Holdings |
| Serabi Gold vs. Omineca Mining and | Serabi Gold vs. Cabral Gold | Serabi Gold vs. Cartier Resources | Serabi Gold vs. Torex Gold 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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