Correlation Between Chevron Corp and KIMBERLY
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By analyzing existing cross correlation between Chevron Corp and KIMBERLY CLARK P, you can compare the effects of market volatilities on Chevron Corp and KIMBERLY 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 KIMBERLY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and KIMBERLY.
Diversification Opportunities for Chevron Corp and KIMBERLY
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chevron and KIMBERLY is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and KIMBERLY CLARK P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMBERLY CLARK 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 KIMBERLY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIMBERLY CLARK P has no effect on the direction of Chevron Corp i.e., Chevron Corp and KIMBERLY go up and down completely randomly.
Pair Corralation between Chevron Corp and KIMBERLY
Considering the 90-day investment horizon Chevron Corp is expected to generate 1.41 times more return on investment than KIMBERLY. However, Chevron Corp is 1.41 times more volatile than KIMBERLY CLARK P. It trades about 0.06 of its potential returns per unit of risk. KIMBERLY CLARK P is currently generating about 0.04 per unit of risk. If you would invest 13,654 in Chevron Corp on September 2, 2024 and sell it today you would earn a total of 2,539 from holding Chevron Corp or generate 18.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 81.85% |
| Values | Daily Returns |
Chevron Corp vs. KIMBERLY CLARK P
Performance |
| Timeline |
| Chevron Corp |
| KIMBERLY CLARK P |
Chevron Corp and KIMBERLY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chevron Corp and KIMBERLY
The main advantage of trading using opposite Chevron Corp and KIMBERLY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, KIMBERLY 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 KIMBERLY will offset losses from the drop in KIMBERLY'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 |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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