Correlation Between Chevron Corp and AGBA Acquisition
Can any of the company-specific risk be diversified away by investing in both Chevron Corp and AGBA Acquisition 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 Chevron Corp and AGBA Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chevron Corp and AGBA Acquisition, you can compare the effects of market volatilities on Chevron Corp and AGBA Acquisition 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 Chevron Corp with a short position of AGBA Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and AGBA Acquisition.
Diversification Opportunities for Chevron Corp and AGBA Acquisition
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chevron and AGBA is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and AGBA Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGBA Acquisition and Chevron Corp 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 Chevron Corp are associated (or correlated) with AGBA Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGBA Acquisition has no effect on the direction of Chevron Corp i.e., Chevron Corp and AGBA Acquisition go up and down completely randomly.
Pair Corralation between Chevron Corp and AGBA Acquisition
If you would invest 14,732 in Chevron Corp on September 1, 2024 and sell it today you would earn a total of 1,461 from holding Chevron Corp or generate 9.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Chevron Corp vs. AGBA Acquisition
Performance |
| Timeline |
| Chevron Corp |
| AGBA Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Chevron Corp and AGBA Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chevron Corp and AGBA Acquisition
The main advantage of trading using opposite Chevron Corp and AGBA Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, AGBA Acquisition 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 AGBA Acquisition will offset losses from the drop in AGBA Acquisition's long position.| Chevron Corp vs. Shell PLC ADR | Chevron Corp vs. BP PLC ADR | Chevron Corp vs. Equinor ASA ADR | Chevron Corp vs. Petrleo Brasileiro SA |
| AGBA Acquisition vs. Magic Empire Global | AGBA Acquisition vs. Netcapital | AGBA Acquisition vs. Mercurity Fintech Holding | AGBA Acquisition vs. Zhong Yang Financial |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |