Correlation Between Chevron Corp and UNITED
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By analyzing existing cross correlation between Chevron Corp and UNITED PARCEL SVC, you can compare the effects of market volatilities on Chevron Corp and UNITED 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 UNITED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and UNITED.
Diversification Opportunities for Chevron Corp and UNITED
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chevron and UNITED is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and UNITED PARCEL SVC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED PARCEL SVC 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 UNITED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITED PARCEL SVC has no effect on the direction of Chevron Corp i.e., Chevron Corp and UNITED go up and down completely randomly.
Pair Corralation between Chevron Corp and UNITED
Considering the 90-day investment horizon Chevron Corp is expected to generate 1.74 times more return on investment than UNITED. However, Chevron Corp is 1.74 times more volatile than UNITED PARCEL SVC. It trades about 0.04 of its potential returns per unit of risk. UNITED PARCEL SVC is currently generating about 0.02 per unit of risk. If you would invest 15,284 in Chevron Corp on September 2, 2024 and sell it today you would earn a total of 909.00 from holding Chevron Corp or generate 5.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.27% |
| Values | Daily Returns |
Chevron Corp vs. UNITED PARCEL SVC
Performance |
| Timeline |
| Chevron Corp |
| UNITED PARCEL SVC |
Chevron Corp and UNITED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chevron Corp and UNITED
The main advantage of trading using opposite Chevron Corp and UNITED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, UNITED 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 UNITED will offset losses from the drop in UNITED'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 |
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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