Correlation Between Chevron Corp and MCCORMICK
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By analyzing existing cross correlation between Chevron Corp and MCCORMICK INC 325, you can compare the effects of market volatilities on Chevron Corp and MCCORMICK 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 MCCORMICK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and MCCORMICK.
Diversification Opportunities for Chevron Corp and MCCORMICK
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chevron and MCCORMICK is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and MCCORMICK INC 325 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCCORMICK INC 325 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 MCCORMICK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCCORMICK INC 325 has no effect on the direction of Chevron Corp i.e., Chevron Corp and MCCORMICK go up and down completely randomly.
Pair Corralation between Chevron Corp and MCCORMICK
Considering the 90-day investment horizon Chevron Corp is expected to generate 2.81 times more return on investment than MCCORMICK. However, Chevron Corp is 2.81 times more volatile than MCCORMICK INC 325. It trades about 0.09 of its potential returns per unit of risk. MCCORMICK INC 325 is currently generating about -0.38 per unit of risk. If you would invest 15,461 in Chevron Corp on December 1, 2024 and sell it today you would earn a total of 401.00 from holding Chevron Corp or generate 2.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.43% |
| Values | Daily Returns |
Chevron Corp vs. MCCORMICK INC 325
Performance |
| Timeline |
| Chevron Corp |
| MCCORMICK INC 325 |
Chevron Corp and MCCORMICK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chevron Corp and MCCORMICK
The main advantage of trading using opposite Chevron Corp and MCCORMICK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, MCCORMICK 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 MCCORMICK will offset losses from the drop in MCCORMICK'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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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