Correlation Between Chesapeake Utilities and VIENNA INSURANCE

Can any of the company-specific risk be diversified away by investing in both Chesapeake Utilities and VIENNA INSURANCE 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 Utilities and VIENNA INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Chesapeake Utilities and VIENNA INSURANCE GR, you can compare the effects of market volatilities on Chesapeake Utilities and VIENNA INSURANCE 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 Utilities with a short position of VIENNA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chesapeake Utilities and VIENNA INSURANCE.

Diversification Opportunities for Chesapeake Utilities and VIENNA INSURANCE

-0.74

Correlation Coefficient

Chesapeake Utilities  VIENNA INSURANCE

Pay attention - limited upside

The 3 months correlation between Chesapeake and VIENNA is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Chesapeake Utilities and VIENNA INSURANCE GR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIENNA INSURANCE and Chesapeake Utilities 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 Utilities are associated (or correlated) with VIENNA INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIENNA INSURANCE has no effect on the direction of Chesapeake Utilities i.e., Chesapeake Utilities and VIENNA INSURANCE go up and down completely randomly.

Pair Corralation between Chesapeake Utilities and VIENNA INSURANCE

Assuming the 90 days horizon Chesapeake Utilities is expected to under-perform the VIENNA INSURANCE. In addition to that, Chesapeake Utilities is 1.27 times more volatile than VIENNA INSURANCE GR. It trades about -0.1 of its total potential returns per unit of risk. VIENNA INSURANCE GR is currently generating about 0.18 per unit of volatility. If you would invest  3,881  in VIENNA INSURANCE GR on April 20, 2025 and sell it today you would earn a total of  584.00  from holding VIENNA INSURANCE GR or generate 15.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Chesapeake Utilities  vs.  VIENNA INSURANCE GR

Chesapeake Utilities

Risk-Adjusted Performance

Very Weak

Over the last 90 days Chesapeake Utilities has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

VIENNA INSURANCE

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in VIENNA INSURANCE GR are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, VIENNA INSURANCE unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Chesapeake Utilities and VIENNA INSURANCE

The main advantage of trading using opposite Chesapeake Utilities and VIENNA INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chesapeake Utilities position performs unexpectedly, VIENNA INSURANCE 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 VIENNA INSURANCE will offset losses from the drop in VIENNA INSURANCE's long position.

The idea behind Chesapeake Utilities and VIENNA INSURANCE GR pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.