Correlation Between Chevron Corp and SANDS
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chevron Corp and SANDS CHINA LTD, you can compare the effects of market volatilities on Chevron Corp and SANDS 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 SANDS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and SANDS.
Diversification Opportunities for Chevron Corp and SANDS
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chevron and SANDS is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and SANDS CHINA LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANDS CHINA LTD 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 SANDS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANDS CHINA LTD has no effect on the direction of Chevron Corp i.e., Chevron Corp and SANDS go up and down completely randomly.
Pair Corralation between Chevron Corp and SANDS
Considering the 90-day investment horizon Chevron Corp is expected to generate 2.63 times more return on investment than SANDS. However, Chevron Corp is 2.63 times more volatile than SANDS CHINA LTD. It trades about 0.01 of its potential returns per unit of risk. SANDS CHINA LTD is currently generating about 0.01 per unit of risk. If you would invest 14,797 in Chevron Corp on November 19, 2024 and sell it today you would earn a total of 737.00 from holding Chevron Corp or generate 4.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.53% |
| Values | Daily Returns |
Chevron Corp vs. SANDS CHINA LTD
Performance |
| Timeline |
| Chevron Corp |
| SANDS CHINA LTD |
Chevron Corp and SANDS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chevron Corp and SANDS
The main advantage of trading using opposite Chevron Corp and SANDS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, SANDS 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 SANDS will offset losses from the drop in SANDS's long position.| Chevron Corp vs. TotalEnergies SE ADR | Chevron Corp vs. Equinor ASA ADR | Chevron Corp vs. Petrleo Brasileiro SA | Chevron Corp vs. Ecopetrol SA ADR |
| SANDS vs. CF Industries Holdings | SANDS vs. Ihuman Inc | SANDS vs. Eastman Chemical | SANDS vs. Mesa Air Group |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |