Correlation Between Fuji Media and Chesapeake Utilities
Can any of the company-specific risk be diversified away by investing in both Fuji Media and Chesapeake Utilities 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 Fuji Media and Chesapeake Utilities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fuji Media Holdings and Chesapeake Utilities, you can compare the effects of market volatilities on Fuji Media and Chesapeake Utilities 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 Fuji Media with a short position of Chesapeake Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuji Media and Chesapeake Utilities.
Diversification Opportunities for Fuji Media and Chesapeake Utilities
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fuji and Chesapeake is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Fuji Media Holdings and Chesapeake Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chesapeake Utilities and Fuji Media 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 Fuji Media Holdings are associated (or correlated) with Chesapeake Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chesapeake Utilities has no effect on the direction of Fuji Media i.e., Fuji Media and Chesapeake Utilities go up and down completely randomly.
Pair Corralation between Fuji Media and Chesapeake Utilities
Assuming the 90 days horizon Fuji Media Holdings is expected to generate 1.59 times more return on investment than Chesapeake Utilities. However, Fuji Media is 1.59 times more volatile than Chesapeake Utilities. It trades about 0.02 of its potential returns per unit of risk. Chesapeake Utilities is currently generating about 0.03 per unit of risk. If you would invest 975.00 in Fuji Media Holdings on September 12, 2024 and sell it today you would earn a total of 105.00 from holding Fuji Media Holdings or generate 10.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fuji Media Holdings vs. Chesapeake Utilities
Performance |
| Timeline |
| Fuji Media Holdings |
| Chesapeake Utilities |
Fuji Media and Chesapeake Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuji Media and Chesapeake Utilities
The main advantage of trading using opposite Fuji Media and Chesapeake Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuji Media position performs unexpectedly, Chesapeake Utilities 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 Chesapeake Utilities will offset losses from the drop in Chesapeake Utilities' long position.| Fuji Media vs. Corporate Office Properties | Fuji Media vs. Japan Asia Investment | Fuji Media vs. Virtus Investment Partners | Fuji Media vs. ECHO INVESTMENT ZY |
| Chesapeake Utilities vs. AIR PRODCHEMICALS | Chesapeake Utilities vs. National Storage Affiliates | Chesapeake Utilities vs. SHIN ETSU CHEMICAL | Chesapeake Utilities vs. X FAB Silicon Foundries |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |