Correlation Between Chevron Corp and Six Flags
Can any of the company-specific risk be diversified away by investing in both Chevron Corp and Six Flags 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 Six Flags into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chevron Corp and Six Flags Entertainment, you can compare the effects of market volatilities on Chevron Corp and Six Flags 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 Six Flags. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and Six Flags.
Diversification Opportunities for Chevron Corp and Six Flags
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chevron and Six is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and Six Flags Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Six Flags Entertainment 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 Six Flags. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Six Flags Entertainment has no effect on the direction of Chevron Corp i.e., Chevron Corp and Six Flags go up and down completely randomly.
Pair Corralation between Chevron Corp and Six Flags
If you would invest 14,656 in Chevron Corp on August 31, 2024 and sell it today you would earn a total of 1,555 from holding Chevron Corp or generate 10.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.55% |
| Values | Daily Returns |
Chevron Corp vs. Six Flags Entertainment
Performance |
| Timeline |
| Chevron Corp |
| Six Flags Entertainment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Chevron Corp and Six Flags Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chevron Corp and Six Flags
The main advantage of trading using opposite Chevron Corp and Six Flags positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, Six Flags 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 Six Flags will offset losses from the drop in Six Flags' long position.| Chevron Corp vs. RLJ Lodging Trust | Chevron Corp vs. Aquagold International | Chevron Corp vs. Stepstone Group | Chevron Corp vs. Morningstar Unconstrained Allocation |
| Six Flags vs. JAKKS Pacific | Six Flags vs. OneSpaWorld Holdings | Six Flags vs. Clarus Corp | Six Flags vs. Six Flags Entertainment |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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