Correlation Between Chevron Corp and HEALTH
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chevron Corp and HEALTH CARE REIT, you can compare the effects of market volatilities on Chevron Corp and HEALTH 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 HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and HEALTH.
Diversification Opportunities for Chevron Corp and HEALTH
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chevron and HEALTH is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and HEALTH CARE REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEALTH CARE REIT 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 HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEALTH CARE REIT has no effect on the direction of Chevron Corp i.e., Chevron Corp and HEALTH go up and down completely randomly.
Pair Corralation between Chevron Corp and HEALTH
Considering the 90-day investment horizon Chevron Corp is expected to generate 0.49 times more return on investment than HEALTH. However, Chevron Corp is 2.05 times less risky than HEALTH. It trades about 0.38 of its potential returns per unit of risk. HEALTH CARE REIT is currently generating about -0.22 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 | Weak |
| Accuracy | 65.22% |
| Values | Daily Returns |
Chevron Corp vs. HEALTH CARE REIT
Performance |
| Timeline |
| Chevron Corp |
| HEALTH CARE REIT |
Chevron Corp and HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chevron Corp and HEALTH
The main advantage of trading using opposite Chevron Corp and HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, HEALTH 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 HEALTH will offset losses from the drop in HEALTH'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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |