Correlation Between Chevron Corp and COMCAST
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By analyzing existing cross correlation between Chevron Corp and COMCAST P NEW, you can compare the effects of market volatilities on Chevron Corp and COMCAST 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 COMCAST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and COMCAST.
Diversification Opportunities for Chevron Corp and COMCAST
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chevron and COMCAST is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and COMCAST P NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMCAST P NEW 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 COMCAST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMCAST P NEW has no effect on the direction of Chevron Corp i.e., Chevron Corp and COMCAST go up and down completely randomly.
Pair Corralation between Chevron Corp and COMCAST
Considering the 90-day investment horizon Chevron Corp is expected to generate 0.72 times more return on investment than COMCAST. However, Chevron Corp is 1.39 times less risky than COMCAST. It trades about 0.36 of its potential returns per unit of risk. COMCAST P NEW is currently generating about 0.01 per unit of risk. If you would invest 14,902 in Chevron Corp on August 27, 2024 and sell it today you would earn a total of 1,334 from holding Chevron Corp or generate 8.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
Chevron Corp vs. COMCAST P NEW
Performance |
| Timeline |
| Chevron Corp |
| COMCAST P NEW |
Chevron Corp and COMCAST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chevron Corp and COMCAST
The main advantage of trading using opposite Chevron Corp and COMCAST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, COMCAST 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 COMCAST will offset losses from the drop in COMCAST's long position.The idea behind Chevron Corp and COMCAST P NEW pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| COMCAST vs. National Beverage Corp | COMCAST vs. ServiceNow | COMCAST vs. Westrock Coffee | COMCAST vs. Lipocine |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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