Correlation Between Chevron Corp and AIM ETF
Can any of the company-specific risk be diversified away by investing in both Chevron Corp and AIM ETF 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 AIM ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chevron Corp and AIM ETF Products, you can compare the effects of market volatilities on Chevron Corp and AIM ETF 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 AIM ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and AIM ETF.
Diversification Opportunities for Chevron Corp and AIM ETF
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chevron and AIM is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and AIM ETF Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIM ETF Products 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 AIM ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIM ETF Products has no effect on the direction of Chevron Corp i.e., Chevron Corp and AIM ETF go up and down completely randomly.
Pair Corralation between Chevron Corp and AIM ETF
Considering the 90-day investment horizon Chevron Corp is expected to generate 1.08 times less return on investment than AIM ETF. In addition to that, Chevron Corp is 4.16 times more volatile than AIM ETF Products. It trades about 0.05 of its total potential returns per unit of risk. AIM ETF Products is currently generating about 0.24 per unit of volatility. If you would invest 2,760 in AIM ETF Products on September 1, 2024 and sell it today you would earn a total of 549.00 from holding AIM ETF Products or generate 19.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.63% |
| Values | Daily Returns |
Chevron Corp vs. AIM ETF Products
Performance |
| Timeline |
| Chevron Corp |
| AIM ETF Products |
Chevron Corp and AIM ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chevron Corp and AIM ETF
The main advantage of trading using opposite Chevron Corp and AIM ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, AIM ETF 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 AIM ETF will offset losses from the drop in AIM ETF'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 |
| AIM ETF vs. Innovator ETFs Trust | AIM ETF vs. First Trust Cboe | AIM ETF vs. Innovator SP 500 | AIM ETF vs. Innovator SP 500 |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |