Correlation Between Chevron Corp and DEERE
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By analyzing existing cross correlation between Chevron Corp and DEERE CO, you can compare the effects of market volatilities on Chevron Corp and DEERE 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 DEERE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and DEERE.
Diversification Opportunities for Chevron Corp and DEERE
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chevron and DEERE is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and DEERE CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DEERE CO 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 DEERE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DEERE CO has no effect on the direction of Chevron Corp i.e., Chevron Corp and DEERE go up and down completely randomly.
Pair Corralation between Chevron Corp and DEERE
Considering the 90-day investment horizon Chevron Corp is expected to generate 1.11 times more return on investment than DEERE. However, Chevron Corp is 1.11 times more volatile than DEERE CO. It trades about 0.38 of its potential returns per unit of risk. DEERE CO is currently generating about 0.0 per unit of risk. If you would invest 14,702 in Chevron Corp on August 30, 2024 and sell it today you would earn a total of 1,509 from holding Chevron Corp or generate 10.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
Chevron Corp vs. DEERE CO
Performance |
| Timeline |
| Chevron Corp |
| DEERE CO |
Chevron Corp and DEERE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chevron Corp and DEERE
The main advantage of trading using opposite Chevron Corp and DEERE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, DEERE 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 DEERE will offset losses from the drop in DEERE'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 |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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