Correlation Between Cabot Oil and Chesapeake Energy
Can any of the company-specific risk be diversified away by investing in both Cabot Oil and Chesapeake Energy 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 Cabot Oil and Chesapeake Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cabot Oil Gas and Chesapeake Energy Corp, you can compare the effects of market volatilities on Cabot Oil and Chesapeake Energy 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 Cabot Oil with a short position of Chesapeake Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cabot Oil and Chesapeake Energy.
Diversification Opportunities for Cabot Oil and Chesapeake Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cabot and Chesapeake is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cabot Oil Gas and Chesapeake Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chesapeake Energy Corp and Cabot Oil 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 Cabot Oil Gas are associated (or correlated) with Chesapeake Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chesapeake Energy Corp has no effect on the direction of Cabot Oil i.e., Cabot Oil and Chesapeake Energy go up and down completely randomly.
Pair Corralation between Cabot Oil and Chesapeake Energy
If you would invest 8,573 in Chesapeake Energy Corp on January 26, 2024 and sell it today you would earn a total of 280.00 from holding Chesapeake Energy Corp or generate 3.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Cabot Oil Gas vs. Chesapeake Energy Corp
Performance |
Timeline |
Cabot Oil Gas |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Chesapeake Energy Corp |
Cabot Oil and Chesapeake Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cabot Oil and Chesapeake Energy
The main advantage of trading using opposite Cabot Oil and Chesapeake Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cabot Oil position performs unexpectedly, Chesapeake Energy 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 Energy will offset losses from the drop in Chesapeake Energy's long position.Cabot Oil vs. Grocery Outlet Holding | Cabot Oil vs. Avarone Metals | Cabot Oil vs. Pinduoduo | Cabot Oil vs. MYT Netherlands Parent |
Chesapeake Energy vs. Range Resources Corp | Chesapeake Energy vs. Antero Resources Corp | Chesapeake Energy vs. EQT Corporation | Chesapeake Energy vs. Comstock Resources |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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