Correlation Between CHEVRON and Dow Jones
Specify exactly 2 symbols:
By analyzing existing cross correlation between CHEVRON P NEW and Dow Jones Industrial, you can compare the effects of market volatilities on CHEVRON and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHEVRON and Dow Jones.
Diversification Opportunities for CHEVRON and Dow Jones
Very good diversification
The 3 months correlation between CHEVRON and Dow is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding CHEVRON P NEW and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 P NEW are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of CHEVRON i.e., CHEVRON and Dow Jones go up and down completely randomly.
Pair Corralation between CHEVRON and Dow Jones
Assuming the 90 days trading horizon CHEVRON P NEW is expected to under-perform the Dow Jones. But the bond apears to be less risky and, when comparing its historical volatility, CHEVRON P NEW is 2.63 times less risky than Dow Jones. The bond trades about -0.13 of its potential returns per unit of risk. The Dow Jones Industrial is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 4,214,154 in Dow Jones Industrial on August 31, 2024 and sell it today you would earn a total of 258,052 from holding Dow Jones Industrial or generate 6.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
CHEVRON P NEW vs. Dow Jones Industrial
Performance |
| Timeline |
CHEVRON and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
CHEVRON P NEW
Pair trading matchups for CHEVRON
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with CHEVRON and Dow Jones
The main advantage of trading using opposite CHEVRON and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHEVRON position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| CHEVRON vs. AEP TEX INC | CHEVRON vs. US BANK NATIONAL | CHEVRON vs. Bank of America | CHEVRON vs. GE Aerospace |
| Dow Jones vs. Aerofoam Metals | Dow Jones vs. ACG Metals Limited | Dow Jones vs. China Clean Energy | Dow Jones vs. Fast Retailing Co |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |