Correlation Between Chevron Corp and 48242WAC0
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By analyzing existing cross correlation between Chevron Corp and KBR INC 475, you can compare the effects of market volatilities on Chevron Corp and 48242WAC0 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 48242WAC0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and 48242WAC0.
Diversification Opportunities for Chevron Corp and 48242WAC0
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chevron and 48242WAC0 is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and KBR INC 475 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBR INC 475 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 48242WAC0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBR INC 475 has no effect on the direction of Chevron Corp i.e., Chevron Corp and 48242WAC0 go up and down completely randomly.
Pair Corralation between Chevron Corp and 48242WAC0
If you would invest 13,883 in Chevron Corp on August 27, 2024 and sell it today you would earn a total of 2,353 from holding Chevron Corp or generate 16.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 56.85% |
| Values | Daily Returns |
Chevron Corp vs. KBR INC 475
Performance |
| Timeline |
| Chevron Corp |
| KBR INC 475 |
Chevron Corp and 48242WAC0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chevron Corp and 48242WAC0
The main advantage of trading using opposite Chevron Corp and 48242WAC0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, 48242WAC0 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 48242WAC0 will offset losses from the drop in 48242WAC0's long position.The idea behind Chevron Corp and KBR INC 475 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.| 48242WAC0 vs. CDW Corp | 48242WAC0 vs. Hooker Furniture | 48242WAC0 vs. Franklin Street Properties | 48242WAC0 vs. FiscalNote Holdings |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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