Correlation Between CHEVRON and Travelers Companies
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By analyzing existing cross correlation between CHEVRON USA INC and The Travelers Companies, you can compare the effects of market volatilities on CHEVRON and Travelers Companies 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 with a short position of Travelers Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHEVRON and Travelers Companies.
Diversification Opportunities for CHEVRON and Travelers Companies
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CHEVRON and Travelers is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding CHEVRON USA INC and The Travelers Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Travelers Companies and CHEVRON 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 USA INC are associated (or correlated) with Travelers Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Travelers Companies has no effect on the direction of CHEVRON i.e., CHEVRON and Travelers Companies go up and down completely randomly.
Pair Corralation between CHEVRON and Travelers Companies
Assuming the 90 days trading horizon CHEVRON is expected to generate 98.92 times less return on investment than Travelers Companies. In addition to that, CHEVRON is 1.01 times more volatile than The Travelers Companies. It trades about 0.0 of its total potential returns per unit of risk. The Travelers Companies is currently generating about 0.09 per unit of volatility. If you would invest 16,854 in The Travelers Companies on September 12, 2024 and sell it today you would earn a total of 7,911 from holding The Travelers Companies or generate 46.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 76.14% |
| Values | Daily Returns |
CHEVRON USA INC vs. The Travelers Companies
Performance |
| Timeline |
| CHEVRON USA INC |
| The Travelers Companies |
CHEVRON and Travelers Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHEVRON and Travelers Companies
The main advantage of trading using opposite CHEVRON and Travelers Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHEVRON position performs unexpectedly, Travelers Companies 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 Travelers Companies will offset losses from the drop in Travelers Companies' long position.| CHEVRON vs. Highway Holdings Limited | CHEVRON vs. Papaya Growth Opportunity | CHEVRON vs. Contagious Gaming | CHEVRON vs. Sabre Corpo |
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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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