Correlation Between Chevron Corp and GENERAL
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By analyzing existing cross correlation between Chevron Corp and GENERAL DYNAMICS P, you can compare the effects of market volatilities on Chevron Corp and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and GENERAL.
Diversification Opportunities for Chevron Corp and GENERAL
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chevron and GENERAL is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and GENERAL DYNAMICS P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL DYNAMICS P 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL DYNAMICS P has no effect on the direction of Chevron Corp i.e., Chevron Corp and GENERAL go up and down completely randomly.
Pair Corralation between Chevron Corp and GENERAL
Considering the 90-day investment horizon Chevron Corp is expected to generate 3.44 times more return on investment than GENERAL. However, Chevron Corp is 3.44 times more volatile than GENERAL DYNAMICS P. It trades about 0.01 of its potential returns per unit of risk. GENERAL DYNAMICS P is currently generating about 0.01 per unit of risk. If you would invest 16,287 in Chevron Corp on August 25, 2024 and sell it today you would lose (51.00) from holding Chevron Corp or give up 0.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.4% |
| Values | Daily Returns |
Chevron Corp vs. GENERAL DYNAMICS P
Performance |
| Timeline |
| Chevron Corp |
| GENERAL DYNAMICS P |
Chevron Corp and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chevron Corp and GENERAL
The main advantage of trading using opposite Chevron Corp and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.| Chevron Corp vs. Shell PLC ADR | Chevron Corp vs. Suncor Energy | Chevron Corp vs. TotalEnergies SE ADR | Chevron Corp vs. Equinor ASA ADR |
| GENERAL vs. Sea | GENERAL vs. Upper Street Marketing | GENERAL vs. Asbury Automotive Group | GENERAL vs. Cedar Realty Trust |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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