Correlation Between DAX Index and Chesapeake Utilities
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By analyzing existing cross correlation between DAX Index and Chesapeake Utilities, you can compare the effects of market volatilities on DAX Index 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 DAX Index with a short position of Chesapeake Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Chesapeake Utilities.
Diversification Opportunities for DAX Index and Chesapeake Utilities
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DAX and Chesapeake is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Chesapeake Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chesapeake Utilities and DAX Index 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 DAX Index 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 DAX Index i.e., DAX Index and Chesapeake Utilities go up and down completely randomly.
Pair Corralation between DAX Index and Chesapeake Utilities
Assuming the 90 days trading horizon DAX Index is expected to generate 0.52 times more return on investment than Chesapeake Utilities. However, DAX Index is 1.92 times less risky than Chesapeake Utilities. It trades about 0.2 of its potential returns per unit of risk. Chesapeake Utilities is currently generating about -0.1 per unit of risk. If you would invest 2,196,197 in DAX Index on April 23, 2025 and sell it today you would earn a total of 234,583 from holding DAX Index or generate 10.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
DAX Index vs. Chesapeake Utilities
Performance |
Timeline |
DAX Index and Chesapeake Utilities Volatility Contrast
Predicted Return Density |
Returns |
DAX Index
Pair trading matchups for DAX Index
Chesapeake Utilities
Pair trading matchups for Chesapeake Utilities
Pair Trading with DAX Index and Chesapeake Utilities
The main advantage of trading using opposite DAX Index and Chesapeake Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index 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.DAX Index vs. EBRO FOODS | DAX Index vs. Cal Maine Foods | DAX Index vs. Thai Beverage Public | DAX Index vs. Maple Leaf Foods |
Chesapeake Utilities vs. MIRAMAR HOTEL INV | Chesapeake Utilities vs. Tower One Wireless | Chesapeake Utilities vs. Dalata Hotel Group | Chesapeake Utilities vs. CLEAN ENERGY FUELS |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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