Correlation Between Chevron Corp and LLOYDS
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By analyzing existing cross correlation between Chevron Corp and LLOYDS BANKING GROUP, you can compare the effects of market volatilities on Chevron Corp and LLOYDS 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 LLOYDS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and LLOYDS.
Diversification Opportunities for Chevron Corp and LLOYDS
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chevron and LLOYDS is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and LLOYDS BANKING GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LLOYDS BANKING GROUP 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 LLOYDS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LLOYDS BANKING GROUP has no effect on the direction of Chevron Corp i.e., Chevron Corp and LLOYDS go up and down completely randomly.
Pair Corralation between Chevron Corp and LLOYDS
Considering the 90-day investment horizon Chevron Corp is expected to generate 0.53 times more return on investment than LLOYDS. However, Chevron Corp is 1.9 times less risky than LLOYDS. It trades about 0.35 of its potential returns per unit of risk. LLOYDS BANKING GROUP is currently generating about -0.26 per unit of risk. If you would invest 14,893 in Chevron Corp on August 25, 2024 and sell it today you would earn a total of 1,343 from holding Chevron Corp or generate 9.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.82% |
| Values | Daily Returns |
Chevron Corp vs. LLOYDS BANKING GROUP
Performance |
| Timeline |
| Chevron Corp |
| LLOYDS BANKING GROUP |
Chevron Corp and LLOYDS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chevron Corp and LLOYDS
The main advantage of trading using opposite Chevron Corp and LLOYDS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, LLOYDS 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 LLOYDS will offset losses from the drop in LLOYDS'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 |
| LLOYDS vs. AEP TEX INC | LLOYDS vs. US BANK NATIONAL | LLOYDS vs. Eat Beyond Global | LLOYDS vs. Charles Schwab Corp |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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