Correlation Between Chevron Corp and BAKER
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By analyzing existing cross correlation between Chevron Corp and BAKER HUGHES A, you can compare the effects of market volatilities on Chevron Corp and BAKER 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 BAKER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and BAKER.
Diversification Opportunities for Chevron Corp and BAKER
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chevron and BAKER is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and BAKER HUGHES A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAKER HUGHES A 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 BAKER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAKER HUGHES A has no effect on the direction of Chevron Corp i.e., Chevron Corp and BAKER go up and down completely randomly.
Pair Corralation between Chevron Corp and BAKER
Considering the 90-day investment horizon Chevron Corp is expected to generate 250.48 times less return on investment than BAKER. But when comparing it to its historical volatility, Chevron Corp is 36.25 times less risky than BAKER. It trades about 0.01 of its potential returns per unit of risk. BAKER HUGHES A is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 8,207 in BAKER HUGHES A on August 24, 2024 and sell it today you would lose (182.00) from holding BAKER HUGHES A or give up 2.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 85.08% |
| Values | Daily Returns |
Chevron Corp vs. BAKER HUGHES A
Performance |
| Timeline |
| Chevron Corp |
| BAKER HUGHES A |
Chevron Corp and BAKER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chevron Corp and BAKER
The main advantage of trading using opposite Chevron Corp and BAKER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, BAKER 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 BAKER will offset losses from the drop in BAKER's long position.| Chevron Corp vs. Eshallgo Class A | Chevron Corp vs. Amtech Systems | Chevron Corp vs. Gold Fields Ltd | Chevron Corp vs. Aegean Airlines SA |
| BAKER vs. United Fire Group | BAKER vs. Doubledown Interactive Co | BAKER vs. Old Republic International | BAKER vs. NioCorp Developments Ltd |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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