Correlation Between Chevron Corp and AMGEN
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By analyzing existing cross correlation between Chevron Corp and AMGEN INC, 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
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chevron and AMGEN is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and AMGEN INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGEN INC 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 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 2.76 times more return on investment than AMGEN. However, Chevron Corp is 2.76 times more volatile than AMGEN INC. It trades about 0.06 of its potential returns per unit of risk. AMGEN INC is currently generating about -0.03 per unit of risk. If you would invest 14,498 in Chevron Corp on September 1, 2024 and sell it today you would earn a total of 1,695 from holding Chevron Corp or generate 11.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.94% |
| Values | Daily Returns |
Chevron Corp vs. AMGEN INC
Performance |
| Timeline |
| Chevron Corp |
| AMGEN INC |
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. Shell PLC ADR | Chevron Corp vs. BP PLC ADR | Chevron Corp vs. Equinor ASA ADR | Chevron Corp vs. Petrleo Brasileiro SA |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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