Correlation Between Golden Energy and Cheviot Financial
Can any of the company-specific risk be diversified away by investing in both Golden Energy and Cheviot Financial 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 Golden Energy and Cheviot Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Energy Offshore and Cheviot Financial Corp, you can compare the effects of market volatilities on Golden Energy and Cheviot Financial 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 Golden Energy with a short position of Cheviot Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Energy and Cheviot Financial.
Diversification Opportunities for Golden Energy and Cheviot Financial
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Golden and Cheviot is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Golden Energy Offshore and Cheviot Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cheviot Financial Corp and Golden 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 Golden Energy Offshore are associated (or correlated) with Cheviot Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cheviot Financial Corp has no effect on the direction of Golden Energy i.e., Golden Energy and Cheviot Financial go up and down completely randomly.
Pair Corralation between Golden Energy and Cheviot Financial
Assuming the 90 days horizon Golden Energy Offshore is expected to under-perform the Cheviot Financial. In addition to that, Golden Energy is 1.57 times more volatile than Cheviot Financial Corp. It trades about -0.02 of its total potential returns per unit of risk. Cheviot Financial Corp is currently generating about -0.02 per unit of volatility. If you would invest 520.00 in Cheviot Financial Corp on August 17, 2025 and sell it today you would lose (12.00) from holding Cheviot Financial Corp or give up 2.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Golden Energy Offshore vs. Cheviot Financial Corp
Performance |
| Timeline |
| Golden Energy Offshore |
| Cheviot Financial Corp |
Golden Energy and Cheviot Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Energy and Cheviot Financial
The main advantage of trading using opposite Golden Energy and Cheviot Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Energy position performs unexpectedly, Cheviot Financial 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 Cheviot Financial will offset losses from the drop in Cheviot Financial's long position.| Golden Energy vs. Toho Titanium Co | Golden Energy vs. Suncorp Technologies Limited | Golden Energy vs. Genoil Inc | Golden Energy vs. Aquarius Engines |
| Cheviot Financial vs. Nok Airlines Public | Cheviot Financial vs. Harbor Diversified | Cheviot Financial vs. YTO Express Holdings | Cheviot Financial vs. Cebu Air 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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