Correlation Between Chesapeake Utilities and Brandywine Realty
Can any of the company-specific risk be diversified away by investing in both Chesapeake Utilities and Brandywine Realty 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 Brandywine Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chesapeake Utilities and Brandywine Realty Trust, you can compare the effects of market volatilities on Chesapeake Utilities and Brandywine Realty 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 Brandywine Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chesapeake Utilities and Brandywine Realty.
Diversification Opportunities for Chesapeake Utilities and Brandywine Realty
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chesapeake and Brandywine is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Chesapeake Utilities and Brandywine Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brandywine Realty Trust 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 Brandywine Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brandywine Realty Trust has no effect on the direction of Chesapeake Utilities i.e., Chesapeake Utilities and Brandywine Realty go up and down completely randomly.
Pair Corralation between Chesapeake Utilities and Brandywine Realty
Considering the 90-day investment horizon Chesapeake Utilities is expected to generate 0.61 times more return on investment than Brandywine Realty. However, Chesapeake Utilities is 1.65 times less risky than Brandywine Realty. It trades about 0.07 of its potential returns per unit of risk. Brandywine Realty Trust is currently generating about -0.26 per unit of risk. If you would invest 12,266 in Chesapeake Utilities on September 8, 2025 and sell it today you would earn a total of 648.00 from holding Chesapeake Utilities or generate 5.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chesapeake Utilities vs. Brandywine Realty Trust
Performance |
| Timeline |
| Chesapeake Utilities |
| Brandywine Realty Trust |
Chesapeake Utilities and Brandywine Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chesapeake Utilities and Brandywine Realty
The main advantage of trading using opposite Chesapeake Utilities and Brandywine Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chesapeake Utilities position performs unexpectedly, Brandywine Realty 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 Brandywine Realty will offset losses from the drop in Brandywine Realty's long position.| Chesapeake Utilities vs. Black Rock Coffee | Chesapeake Utilities vs. Profound Medical Corp | Chesapeake Utilities vs. CVR Medical Corp | Chesapeake Utilities vs. Ark Restaurants Corp |
| Brandywine Realty vs. First Industrial Realty | Brandywine Realty vs. Healthcare Realty Trust | Brandywine Realty vs. Boardwalk Real Estate | Brandywine Realty vs. PRS Reit PLC |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |