Correlation Between Chevron Corp and EMERA
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By analyzing existing cross correlation between Chevron Corp and EMERA FIN LP, you can compare the effects of market volatilities on Chevron Corp and EMERA 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 EMERA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and EMERA.
Diversification Opportunities for Chevron Corp and EMERA
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chevron and EMERA is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and EMERA FIN LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMERA FIN LP 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 EMERA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMERA FIN LP has no effect on the direction of Chevron Corp i.e., Chevron Corp and EMERA go up and down completely randomly.
Pair Corralation between Chevron Corp and EMERA
Considering the 90-day investment horizon Chevron Corp is expected to generate 1.12 times more return on investment than EMERA. However, Chevron Corp is 1.12 times more volatile than EMERA FIN LP. It trades about 0.06 of its potential returns per unit of risk. EMERA FIN LP is currently generating about 0.0 per unit of risk. If you would invest 13,950 in Chevron Corp on August 24, 2024 and sell it today you would earn a total of 2,216 from holding Chevron Corp or generate 15.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 90.8% |
| Values | Daily Returns |
Chevron Corp vs. EMERA FIN LP
Performance |
| Timeline |
| Chevron Corp |
| EMERA FIN LP |
Chevron Corp and EMERA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chevron Corp and EMERA
The main advantage of trading using opposite Chevron Corp and EMERA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, EMERA 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 EMERA will offset losses from the drop in EMERA'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 |
| EMERA vs. Oatly Group AB | EMERA vs. Hudson Technologies | EMERA vs. Monster Beverage Corp | EMERA vs. Chemours Co |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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