Correlation Between Chevron Corp and AMGEN
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By analyzing existing cross correlation between Chevron Corp and AMGEN INC 44, you can compare the effects of market volatilities on Chevron Corp and AMGEN 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 AMGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and AMGEN.
Diversification Opportunities for Chevron Corp and AMGEN
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chevron and AMGEN is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and AMGEN INC 44 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGEN INC 44 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 AMGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMGEN INC 44 has no effect on the direction of Chevron Corp i.e., Chevron Corp and AMGEN go up and down completely randomly.
Pair Corralation between Chevron Corp and AMGEN
Considering the 90-day investment horizon Chevron Corp is expected to generate 159.66 times less return on investment than AMGEN. But when comparing it to its historical volatility, Chevron Corp is 33.88 times less risky than AMGEN. It trades about 0.01 of its potential returns per unit of risk. AMGEN INC 44 is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 9,013 in AMGEN INC 44 on August 29, 2024 and sell it today you would lose (392.00) from holding AMGEN INC 44 or give up 4.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.78% |
| Values | Daily Returns |
Chevron Corp vs. AMGEN INC 44
Performance |
| Timeline |
| Chevron Corp |
| AMGEN INC 44 |
Chevron Corp and AMGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chevron Corp and AMGEN
The main advantage of trading using opposite Chevron Corp and AMGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, AMGEN 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 AMGEN will offset losses from the drop in AMGEN's long position.| Chevron Corp vs. BP PLC ADR | Chevron Corp vs. Shell PLC ADR | Chevron Corp vs. Petroleo Brasileiro Petrobras | Chevron Corp vs. Suncor Energy |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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