Correlation Between Chevron Corp and SASOL
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By analyzing existing cross correlation between Chevron Corp and SASOL FING USA, you can compare the effects of market volatilities on Chevron Corp and SASOL 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 SASOL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and SASOL.
Diversification Opportunities for Chevron Corp and SASOL
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chevron and SASOL is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and SASOL FING USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SASOL FING USA 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 SASOL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SASOL FING USA has no effect on the direction of Chevron Corp i.e., Chevron Corp and SASOL go up and down completely randomly.
Pair Corralation between Chevron Corp and SASOL
Considering the 90-day investment horizon Chevron Corp is expected to generate 0.68 times more return on investment than SASOL. However, Chevron Corp is 1.47 times less risky than SASOL. It trades about 0.39 of its potential returns per unit of risk. SASOL FING USA is currently generating about -0.1 per unit of risk. If you would invest 14,732 in Chevron Corp on September 1, 2024 and sell it today you would earn a total of 1,461 from holding Chevron Corp or generate 9.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chevron Corp vs. SASOL FING USA
Performance |
| Timeline |
| Chevron Corp |
| SASOL FING USA |
Chevron Corp and SASOL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chevron Corp and SASOL
The main advantage of trading using opposite Chevron Corp and SASOL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, SASOL 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 SASOL will offset losses from the drop in SASOL's long position.| Chevron Corp vs. Shell PLC ADR | Chevron Corp vs. BP PLC ADR | Chevron Corp vs. Suncor Energy | Chevron Corp vs. Equinor ASA ADR |
| SASOL vs. Townsquare Media | SASOL vs. Magnite | SASOL vs. Western Sierra Mining | SASOL vs. Zijin Mining 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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