Correlation Between Expand Energy and CHK Old
Can any of the company-specific risk be diversified away by investing in both Expand Energy and CHK Old 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 Expand Energy and CHK Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expand Energy and CHK Old, you can compare the effects of market volatilities on Expand Energy and CHK Old 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 Expand Energy with a short position of CHK Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expand Energy and CHK Old.
Diversification Opportunities for Expand Energy and CHK Old
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Expand and CHK is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Expand Energy and CHK Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHK Old and Expand 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 Expand Energy are associated (or correlated) with CHK Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHK Old has no effect on the direction of Expand Energy i.e., Expand Energy and CHK Old go up and down completely randomly.
Pair Corralation between Expand Energy and CHK Old
If you would invest 8,963 in Expand Energy on November 3, 2024 and sell it today you would earn a total of 1,169 from holding Expand Energy or generate 13.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Expand Energy vs. CHK Old
Performance |
| Timeline |
| Expand Energy |
| CHK Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Expand Energy and CHK Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expand Energy and CHK Old
The main advantage of trading using opposite Expand Energy and CHK Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expand Energy position performs unexpectedly, CHK Old 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 CHK Old will offset losses from the drop in CHK Old's long position.| Expand Energy vs. Grupo Aeroportuario del | Expand Energy vs. Mako Mining Corp | Expand Energy vs. ioneer Ltd American | Expand Energy vs. Harmony Gold Mining |
| CHK Old vs. Range Resources Corp | CHK Old vs. Antero Resources Corp | CHK Old vs. EQT Corporation | CHK Old vs. Comstock 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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