Correlation Between Excelerate Energy and Chesapeake Utilities
Can any of the company-specific risk be diversified away by investing in both Excelerate Energy and Chesapeake Utilities 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 Excelerate Energy and Chesapeake Utilities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Excelerate Energy and Chesapeake Utilities, you can compare the effects of market volatilities on Excelerate Energy and Chesapeake Utilities 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 Excelerate Energy with a short position of Chesapeake Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excelerate Energy and Chesapeake Utilities.
Diversification Opportunities for Excelerate Energy and Chesapeake Utilities
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Excelerate and Chesapeake is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Excelerate Energy and Chesapeake Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chesapeake Utilities and Excelerate Energy 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 Excelerate Energy are associated (or correlated) with Chesapeake Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chesapeake Utilities has no effect on the direction of Excelerate Energy i.e., Excelerate Energy and Chesapeake Utilities go up and down completely randomly.
Pair Corralation between Excelerate Energy and Chesapeake Utilities
Allowing for the 90-day total investment horizon Excelerate Energy is expected to generate 1.46 times less return on investment than Chesapeake Utilities. In addition to that, Excelerate Energy is 1.75 times more volatile than Chesapeake Utilities. It trades about 0.01 of its total potential returns per unit of risk. Chesapeake Utilities is currently generating about 0.02 per unit of volatility. If you would invest 12,993 in Chesapeake Utilities on July 27, 2025 and sell it today you would earn a total of 194.00 from holding Chesapeake Utilities or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Excelerate Energy vs. Chesapeake Utilities
Performance |
| Timeline |
| Excelerate Energy |
| Chesapeake Utilities |
Excelerate Energy and Chesapeake Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excelerate Energy and Chesapeake Utilities
The main advantage of trading using opposite Excelerate Energy and Chesapeake Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excelerate Energy position performs unexpectedly, Chesapeake Utilities 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 Chesapeake Utilities will offset losses from the drop in Chesapeake Utilities' long position.| Excelerate Energy vs. Renew Energy Global | Excelerate Energy vs. MGE Energy | Excelerate Energy vs. Avista | Excelerate Energy vs. Otter Tail |
| Chesapeake Utilities vs. MGE Energy | Chesapeake Utilities vs. Excelerate Energy | Chesapeake Utilities vs. American States Water | Chesapeake Utilities vs. Avista |
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.
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