Correlation Between Chevron Corp and NSTAR
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chevron Corp and NSTAR ELEC 32, you can compare the effects of market volatilities on Chevron Corp and NSTAR 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 NSTAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and NSTAR.
Diversification Opportunities for Chevron Corp and NSTAR
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chevron and NSTAR is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and NSTAR ELEC 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NSTAR ELEC 32 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 NSTAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NSTAR ELEC 32 has no effect on the direction of Chevron Corp i.e., Chevron Corp and NSTAR go up and down completely randomly.
Pair Corralation between Chevron Corp and NSTAR
Considering the 90-day investment horizon Chevron Corp is expected to generate 5.77 times more return on investment than NSTAR. However, Chevron Corp is 5.77 times more volatile than NSTAR ELEC 32. It trades about 0.04 of its potential returns per unit of risk. NSTAR ELEC 32 is currently generating about 0.08 per unit of risk. If you would invest 15,414 in Chevron Corp on September 1, 2024 and sell it today you would earn a total of 779.00 from holding Chevron Corp or generate 5.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 88.89% |
| Values | Daily Returns |
Chevron Corp vs. NSTAR ELEC 32
Performance |
| Timeline |
| Chevron Corp |
| NSTAR ELEC 32 |
Chevron Corp and NSTAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chevron Corp and NSTAR
The main advantage of trading using opposite Chevron Corp and NSTAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, NSTAR 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 NSTAR will offset losses from the drop in NSTAR's long position.| Chevron Corp vs. Shell PLC ADR | Chevron Corp vs. BP PLC ADR | Chevron Corp vs. Equinor ASA ADR | Chevron Corp vs. Petrleo Brasileiro SA |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |