Correlation Between Chesapeake Utilities and ISE Chemicals
Can any of the company-specific risk be diversified away by investing in both Chesapeake Utilities and ISE Chemicals 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 ISE Chemicals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chesapeake Utilities and ISE Chemicals, you can compare the effects of market volatilities on Chesapeake Utilities and ISE Chemicals 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 ISE Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chesapeake Utilities and ISE Chemicals.
Diversification Opportunities for Chesapeake Utilities and ISE Chemicals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chesapeake and ISE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chesapeake Utilities and ISE Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ISE Chemicals 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 ISE Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ISE Chemicals has no effect on the direction of Chesapeake Utilities i.e., Chesapeake Utilities and ISE Chemicals go up and down completely randomly.
Pair Corralation between Chesapeake Utilities and ISE Chemicals
If you would invest 12,045 in Chesapeake Utilities on July 28, 2025 and sell it today you would earn a total of 1,142 from holding Chesapeake Utilities or generate 9.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.48% |
| Values | Daily Returns |
Chesapeake Utilities vs. ISE Chemicals
Performance |
| Timeline |
| Chesapeake Utilities |
| ISE Chemicals |
Chesapeake Utilities and ISE Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chesapeake Utilities and ISE Chemicals
The main advantage of trading using opposite Chesapeake Utilities and ISE Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chesapeake Utilities position performs unexpectedly, ISE Chemicals 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 ISE Chemicals will offset losses from the drop in ISE Chemicals' long position.| Chesapeake Utilities vs. MGE Energy | Chesapeake Utilities vs. Excelerate Energy | Chesapeake Utilities vs. American States Water | Chesapeake Utilities vs. Avista |
| ISE Chemicals vs. Cal Bay Intl | ISE Chemicals vs. Worldwide Holdings Corp | ISE Chemicals vs. One World Ventures | ISE Chemicals vs. First State Financial |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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