Correlation Between Chevron Corp and KraneShares
Can any of the company-specific risk be diversified away by investing in both Chevron Corp and KraneShares 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 KraneShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chevron Corp and KraneShares, you can compare the effects of market volatilities on Chevron Corp and KraneShares 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 KraneShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and KraneShares.
Diversification Opportunities for Chevron Corp and KraneShares
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chevron and KraneShares is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and KraneShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares 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 KraneShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares has no effect on the direction of Chevron Corp i.e., Chevron Corp and KraneShares go up and down completely randomly.
Pair Corralation between Chevron Corp and KraneShares
If you would invest 15,492 in Chevron Corp on September 12, 2024 and sell it today you would earn a total of 208.00 from holding Chevron Corp or generate 1.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Chevron Corp vs. KraneShares
Performance |
| Timeline |
| Chevron Corp |
| KraneShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Chevron Corp and KraneShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chevron Corp and KraneShares
The main advantage of trading using opposite Chevron Corp and KraneShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, KraneShares 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 KraneShares will offset losses from the drop in KraneShares' long position.| Chevron Corp vs. Victory Integrity Smallmid Cap | Chevron Corp vs. Hilton Worldwide Holdings | Chevron Corp vs. NVIDIA | Chevron Corp vs. JPMorgan Chase Co |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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