Correlation Between KVH Industries and Chesapeake Energy
Can any of the company-specific risk be diversified away by investing in both KVH Industries and Chesapeake Energy 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 KVH Industries and Chesapeake Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KVH Industries and Chesapeake Energy, you can compare the effects of market volatilities on KVH Industries and Chesapeake Energy 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 KVH Industries with a short position of Chesapeake Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of KVH Industries and Chesapeake Energy.
Diversification Opportunities for KVH Industries and Chesapeake Energy
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between KVH and Chesapeake is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding KVH Industries and Chesapeake Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chesapeake Energy and KVH Industries 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 KVH Industries are associated (or correlated) with Chesapeake Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chesapeake Energy has no effect on the direction of KVH Industries i.e., KVH Industries and Chesapeake Energy go up and down completely randomly.
Pair Corralation between KVH Industries and Chesapeake Energy
If you would invest 463.00 in KVH Industries on September 1, 2024 and sell it today you would earn a total of 88.00 from holding KVH Industries or generate 19.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
KVH Industries vs. Chesapeake Energy
Performance |
| Timeline |
| KVH Industries |
| Chesapeake Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
KVH Industries and Chesapeake Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KVH Industries and Chesapeake Energy
The main advantage of trading using opposite KVH Industries and Chesapeake Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KVH Industries position performs unexpectedly, Chesapeake Energy 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 Energy will offset losses from the drop in Chesapeake Energy's long position.| KVH Industries vs. Telesat Corp | KVH Industries vs. Comtech Telecommunications Corp | KVH Industries vs. Knowles Cor | KVH Industries vs. Ituran Location and |
| Chesapeake Energy vs. Vera Bradley | Chesapeake Energy vs. Ryanair Holdings PLC | Chesapeake Energy vs. Lindblad Expeditions Holdings | Chesapeake Energy vs. Rocky Brands |
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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