Correlation Between Chesapeake Utilities and Plaza Retail
Can any of the company-specific risk be diversified away by investing in both Chesapeake Utilities and Plaza Retail 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 Plaza Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chesapeake Utilities and Plaza Retail REIT, you can compare the effects of market volatilities on Chesapeake Utilities and Plaza Retail 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 Plaza Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chesapeake Utilities and Plaza Retail.
Diversification Opportunities for Chesapeake Utilities and Plaza Retail
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chesapeake and Plaza is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Chesapeake Utilities and Plaza Retail REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plaza Retail REIT 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 Plaza Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plaza Retail REIT has no effect on the direction of Chesapeake Utilities i.e., Chesapeake Utilities and Plaza Retail go up and down completely randomly.
Pair Corralation between Chesapeake Utilities and Plaza Retail
Considering the 90-day investment horizon Chesapeake Utilities is expected to generate 1.13 times more return on investment than Plaza Retail. However, Chesapeake Utilities is 1.13 times more volatile than Plaza Retail REIT. It trades about 0.07 of its potential returns per unit of risk. Plaza Retail REIT is currently generating about -0.01 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chesapeake Utilities vs. Plaza Retail REIT
Performance |
| Timeline |
| Chesapeake Utilities |
| Plaza Retail REIT |
Chesapeake Utilities and Plaza Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chesapeake Utilities and Plaza Retail
The main advantage of trading using opposite Chesapeake Utilities and Plaza Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chesapeake Utilities position performs unexpectedly, Plaza Retail 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 Plaza Retail will offset losses from the drop in Plaza Retail's long position.| Chesapeake Utilities vs. Harmony Gold Mining | Chesapeake Utilities vs. RCI Hospitality Holdings | Chesapeake Utilities vs. Catalyst Metals Limited | Chesapeake Utilities vs. Perseus Mining Limited |
| Plaza Retail vs. Office Properties Income | Plaza Retail vs. Tuxis | Plaza Retail vs. CSG Systems International | Plaza Retail vs. Fujitsu Ltd ADR |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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