Correlation Between Chesapeake Gold and IShares Canadian
Can any of the company-specific risk be diversified away by investing in both Chesapeake Gold and IShares Canadian 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 Gold and IShares Canadian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chesapeake Gold Corp and iShares Canadian HYBrid, you can compare the effects of market volatilities on Chesapeake Gold and IShares Canadian 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 Gold with a short position of IShares Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chesapeake Gold and IShares Canadian.
Diversification Opportunities for Chesapeake Gold and IShares Canadian
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chesapeake and IShares is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Chesapeake Gold Corp and iShares Canadian HYBrid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Canadian HYBrid and Chesapeake Gold 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 Gold Corp are associated (or correlated) with IShares Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Canadian HYBrid has no effect on the direction of Chesapeake Gold i.e., Chesapeake Gold and IShares Canadian go up and down completely randomly.
Pair Corralation between Chesapeake Gold and IShares Canadian
Assuming the 90 days horizon Chesapeake Gold Corp is expected to under-perform the IShares Canadian. In addition to that, Chesapeake Gold is 18.17 times more volatile than iShares Canadian HYBrid. It trades about -0.15 of its total potential returns per unit of risk. iShares Canadian HYBrid is currently generating about 0.18 per unit of volatility. If you would invest 1,935 in iShares Canadian HYBrid on September 11, 2024 and sell it today you would earn a total of 63.00 from holding iShares Canadian HYBrid or generate 3.26% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Chesapeake Gold Corp vs. iShares Canadian HYBrid
Performance |
Timeline |
Chesapeake Gold Corp |
iShares Canadian HYBrid |
Chesapeake Gold and IShares Canadian Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chesapeake Gold and IShares Canadian
The main advantage of trading using opposite Chesapeake Gold and IShares Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chesapeake Gold position performs unexpectedly, IShares Canadian 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 IShares Canadian will offset losses from the drop in IShares Canadian's long position.Chesapeake Gold vs. Bear Creek Mining | Chesapeake Gold vs. Spanish Mountain Gold | Chesapeake Gold vs. Kore Mining | Chesapeake Gold vs. Kootenay Silver |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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