Correlation Between Chevron Corp and NUSTAR
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By analyzing existing cross correlation between Chevron Corp and NUSTAR LOGISTICS L, you can compare the effects of market volatilities on Chevron Corp and NUSTAR 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 NUSTAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and NUSTAR.
Diversification Opportunities for Chevron Corp and NUSTAR
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chevron and NUSTAR is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and NUSTAR LOGISTICS L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NUSTAR LOGISTICS L 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 NUSTAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NUSTAR LOGISTICS L has no effect on the direction of Chevron Corp i.e., Chevron Corp and NUSTAR go up and down completely randomly.
Pair Corralation between Chevron Corp and NUSTAR
Considering the 90-day investment horizon Chevron Corp is expected to generate 0.5 times more return on investment than NUSTAR. However, Chevron Corp is 2.0 times less risky than NUSTAR. It trades about 0.41 of its potential returns per unit of risk. NUSTAR LOGISTICS L is currently generating about -0.04 per unit of risk. If you would invest 14,656 in Chevron Corp on August 31, 2024 and sell it today you would earn a total of 1,555 from holding Chevron Corp or generate 10.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chevron Corp vs. NUSTAR LOGISTICS L
Performance |
| Timeline |
| Chevron Corp |
| NUSTAR LOGISTICS L |
Chevron Corp and NUSTAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chevron Corp and NUSTAR
The main advantage of trading using opposite Chevron Corp and NUSTAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, NUSTAR 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 NUSTAR will offset losses from the drop in NUSTAR's long position.| Chevron Corp vs. RLJ Lodging Trust | Chevron Corp vs. Aquagold International | Chevron Corp vs. Stepstone Group | Chevron Corp vs. Morningstar Unconstrained Allocation |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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