Correlation Between Chevron Corp and WALMART
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By analyzing existing cross correlation between Chevron Corp and WALMART INC 4, you can compare the effects of market volatilities on Chevron Corp and WALMART 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 WALMART. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chevron Corp and WALMART.
Diversification Opportunities for Chevron Corp and WALMART
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chevron and WALMART is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Chevron Corp and WALMART INC 4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WALMART INC 4 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 WALMART. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WALMART INC 4 has no effect on the direction of Chevron Corp i.e., Chevron Corp and WALMART go up and down completely randomly.
Pair Corralation between Chevron Corp and WALMART
Considering the 90-day investment horizon Chevron Corp is expected to generate 0.67 times more return on investment than WALMART. However, Chevron Corp is 1.48 times less risky than WALMART. It trades about 0.01 of its potential returns per unit of risk. WALMART INC 4 is currently generating about 0.0 per unit of risk. If you would invest 15,497 in Chevron Corp on August 30, 2024 and sell it today you would earn a total of 714.00 from holding Chevron Corp or generate 4.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 75.0% |
| Values | Daily Returns |
Chevron Corp vs. WALMART INC 4
Performance |
| Timeline |
| Chevron Corp |
| WALMART INC 4 |
Chevron Corp and WALMART Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chevron Corp and WALMART
The main advantage of trading using opposite Chevron Corp and WALMART positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chevron Corp position performs unexpectedly, WALMART 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 WALMART will offset losses from the drop in WALMART'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 |
| WALMART vs. Drilling Tools International | WALMART vs. Patterson UTI Energy | WALMART vs. Tenaris SA ADR | WALMART vs. Transocean |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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