Correlation Between Chesapeake Granite and BSA

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

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

Diversification Opportunities for Chesapeake Granite and BSA

0.0

Correlation Coefficient

Chesapeake Granite  BSA

Pay attention - limited upside

The 3 months correlation between Chesapeake and BSA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chesapeake Granite Wash and BSA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BSA and Chesapeake Granite 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 Granite Wash are associated (or correlated) with BSA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BSA has no effect on the direction of Chesapeake Granite i.e., Chesapeake Granite and BSA go up and down completely randomly.

Pair Corralation between Chesapeake Granite and BSA

If you would invest (100.00) in Chesapeake Granite Wash on December 11, 2024 and sell it today you would earn a total of  100.00  from holding Chesapeake Granite Wash or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Chesapeake Granite Wash  vs.  BSA

Chesapeake Granite Wash

Risk-Adjusted Performance

Very Weak

Over the last 90 days Chesapeake Granite Wash has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward-looking signals, Chesapeake Granite is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

BSA

Risk-Adjusted Performance

Very Weak

Over the last 90 days BSA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Chesapeake Granite and BSA

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

The idea behind Chesapeake Granite Wash and BSA 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.