Correlation Between CHEVRON and Willamette Valley
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By analyzing existing cross correlation between CHEVRON USA INC and Willamette Valley Vineyards, you can compare the effects of market volatilities on CHEVRON and Willamette Valley 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 Willamette Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHEVRON and Willamette Valley.
Diversification Opportunities for CHEVRON and Willamette Valley
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CHEVRON and Willamette is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding CHEVRON USA INC and Willamette Valley Vineyards in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Willamette Valley 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 Willamette Valley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Willamette Valley has no effect on the direction of CHEVRON i.e., CHEVRON and Willamette Valley go up and down completely randomly.
Pair Corralation between CHEVRON and Willamette Valley
Assuming the 90 days trading horizon CHEVRON USA INC is expected to generate 1.05 times more return on investment than Willamette Valley. However, CHEVRON is 1.05 times more volatile than Willamette Valley Vineyards. It trades about -0.07 of its potential returns per unit of risk. Willamette Valley Vineyards is currently generating about -0.11 per unit of risk. If you would invest 9,969 in CHEVRON USA INC on September 3, 2024 and sell it today you would lose (158.00) from holding CHEVRON USA INC or give up 1.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
CHEVRON USA INC vs. Willamette Valley Vineyards
Performance |
| Timeline |
| CHEVRON USA INC |
| Willamette Valley |
CHEVRON and Willamette Valley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHEVRON and Willamette Valley
The main advantage of trading using opposite CHEVRON and Willamette Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHEVRON position performs unexpectedly, Willamette Valley 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 Willamette Valley will offset losses from the drop in Willamette Valley's long position.| CHEVRON vs. The Travelers Companies | CHEVRON vs. GE Aerospace | CHEVRON vs. Walmart | CHEVRON vs. Pfizer Inc |
| Willamette Valley vs. Naked Wines plc | Willamette Valley vs. Andrew Peller Limited | Willamette Valley vs. Iconic Brands | Willamette Valley vs. Naked Wines plc |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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