Correlation Between United Express and Cheviot Financial

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Can any of the company-specific risk be diversified away by investing in both United Express 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 United Express and Cheviot Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Express and Cheviot Financial Corp, you can compare the effects of market volatilities on United Express 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 United Express with a short position of Cheviot Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Express and Cheviot Financial.

Diversification Opportunities for United Express and Cheviot Financial

0.01
  Correlation Coefficient

Significant diversification

The 3 months correlation between United and Cheviot is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding United Express 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 United Express 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 United Express 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 United Express i.e., United Express and Cheviot Financial go up and down completely randomly.

Pair Corralation between United Express and Cheviot Financial

Given the investment horizon of 90 days United Express is expected to under-perform the Cheviot Financial. In addition to that, United Express is 6.08 times more volatile than Cheviot Financial Corp. It trades about -0.15 of its total potential returns per unit of risk. Cheviot Financial Corp is currently generating about -0.03 per unit of volatility. If you would invest  520.00  in Cheviot Financial Corp on August 6, 2025 and sell it today you would lose (15.00) from holding Cheviot Financial Corp or give up 2.88% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy98.44%
ValuesDaily Returns

United Express  vs.  Cheviot Financial Corp

 Performance 
       Timeline  
United Express 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days United Express has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in December 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
Cheviot Financial Corp 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Cheviot Financial Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, Cheviot Financial is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

United Express and Cheviot Financial Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with United Express and Cheviot Financial

The main advantage of trading using opposite United Express and Cheviot Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Express 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.
The idea behind United Express and Cheviot Financial Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

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