Correlation Between Chesapeake Utilities and Vantage Towers
Can any of the company-specific risk be diversified away by investing in both Chesapeake Utilities and Vantage Towers 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 Vantage Towers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chesapeake Utilities and Vantage Towers AG, you can compare the effects of market volatilities on Chesapeake Utilities and Vantage Towers 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 Vantage Towers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chesapeake Utilities and Vantage Towers.
Diversification Opportunities for Chesapeake Utilities and Vantage Towers
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chesapeake and Vantage is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Chesapeake Utilities and Vantage Towers AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vantage Towers AG 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 Vantage Towers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vantage Towers AG has no effect on the direction of Chesapeake Utilities i.e., Chesapeake Utilities and Vantage Towers go up and down completely randomly.
Pair Corralation between Chesapeake Utilities and Vantage Towers
Considering the 90-day investment horizon Chesapeake Utilities is expected to generate 1.89 times more return on investment than Vantage Towers. However, Chesapeake Utilities is 1.89 times more volatile than Vantage Towers AG. It trades about 0.18 of its potential returns per unit of risk. Vantage Towers AG is currently generating about 0.13 per unit of risk. If you would invest 12,248 in Chesapeake Utilities on August 30, 2025 and sell it today you would earn a total of 1,590 from holding Chesapeake Utilities or generate 12.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chesapeake Utilities vs. Vantage Towers AG
Performance |
| Timeline |
| Chesapeake Utilities |
| Vantage Towers AG |
Chesapeake Utilities and Vantage Towers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chesapeake Utilities and Vantage Towers
The main advantage of trading using opposite Chesapeake Utilities and Vantage Towers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chesapeake Utilities position performs unexpectedly, Vantage Towers 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 Vantage Towers will offset losses from the drop in Vantage Towers' long position.| Chesapeake Utilities vs. Kelvin Medical | Chesapeake Utilities vs. Eagle Materials | Chesapeake Utilities vs. Medical Connections Holdings | Chesapeake Utilities vs. Todos Medical |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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