Correlation Between Chevron Corp and LOWES
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By analyzing existing cross correlation between Chevron Corp and LOWES PANIES INC, you can compare the effects of market volatilities on Chevron Corp and LOWES 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 LOWES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and LOWES.
Diversification Opportunities for Chevron Corp and LOWES
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chevron and LOWES is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and LOWES PANIES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOWES PANIES INC 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 LOWES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOWES PANIES INC has no effect on the direction of Chevron Corp i.e., Chevron Corp and LOWES go up and down completely randomly.
Pair Corralation between Chevron Corp and LOWES
Considering the 90-day investment horizon Chevron Corp is expected to generate 0.7 times more return on investment than LOWES. However, Chevron Corp is 1.43 times less risky than LOWES. It trades about 0.06 of its potential returns per unit of risk. LOWES PANIES INC is currently generating about -0.06 per unit of risk. If you would invest 15,025 in Chevron Corp on September 13, 2024 and sell it today you would earn a total of 425.50 from holding Chevron Corp or generate 2.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.02% |
| Values | Daily Returns |
Chevron Corp vs. LOWES PANIES INC
Performance |
| Timeline |
| Chevron Corp |
| LOWES PANIES INC |
Chevron Corp and LOWES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chevron Corp and LOWES
The main advantage of trading using opposite Chevron Corp and LOWES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, LOWES 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 LOWES will offset losses from the drop in LOWES's long position.| Chevron Corp vs. Aquagold International | Chevron Corp vs. Thrivent High Yield | Chevron Corp vs. Morningstar Unconstrained Allocation | Chevron Corp vs. Via Renewables |
| LOWES vs. National CineMedia | LOWES vs. Hf Foods Group | LOWES vs. Senmiao Technology | LOWES vs. NH Foods Ltd |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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