Correlation Between Aehr Test and CHEVRON
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By analyzing existing cross correlation between Aehr Test Systems and CHEVRON P, you can compare the effects of market volatilities on Aehr Test and CHEVRON 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 Aehr Test with a short position of CHEVRON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aehr Test and CHEVRON.
Diversification Opportunities for Aehr Test and CHEVRON
Weak diversification
The 3 months correlation between Aehr and CHEVRON is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Aehr Test Systems and CHEVRON P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHEVRON P and Aehr Test 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 Aehr Test Systems are associated (or correlated) with CHEVRON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHEVRON P has no effect on the direction of Aehr Test i.e., Aehr Test and CHEVRON go up and down completely randomly.
Pair Corralation between Aehr Test and CHEVRON
Given the investment horizon of 90 days Aehr Test Systems is expected to under-perform the CHEVRON. In addition to that, Aehr Test is 7.7 times more volatile than CHEVRON P. It trades about -0.21 of its total potential returns per unit of risk. CHEVRON P is currently generating about -0.19 per unit of volatility. If you would invest 9,435 in CHEVRON P on August 31, 2024 and sell it today you would lose (221.00) from holding CHEVRON P or give up 2.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aehr Test Systems vs. CHEVRON P
Performance |
| Timeline |
| Aehr Test Systems |
| CHEVRON P |
Aehr Test and CHEVRON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aehr Test and CHEVRON
The main advantage of trading using opposite Aehr Test and CHEVRON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aehr Test position performs unexpectedly, CHEVRON 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 CHEVRON will offset losses from the drop in CHEVRON's long position.| Aehr Test vs. Photronics | Aehr Test vs. Lam Research Corp | Aehr Test vs. KLA Tencor | Aehr Test vs. Kulicke and Soffa |
| CHEVRON vs. MagnaChip Semiconductor | CHEVRON vs. ON Semiconductor | CHEVRON vs. Aehr Test Systems | CHEVRON vs. Vishay Intertechnology |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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