Correlation Between GENERAL and Chevron Corp
Specify exactly 2 symbols:
By analyzing existing cross correlation between GENERAL ELEC CAP and Chevron Corp, you can compare the effects of market volatilities on GENERAL and Chevron Corp 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 GENERAL with a short position of Chevron Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of GENERAL and Chevron Corp.
Diversification Opportunities for GENERAL and Chevron Corp
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GENERAL and Chevron is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding GENERAL ELEC CAP and Chevron Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chevron Corp and GENERAL 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 GENERAL ELEC CAP are associated (or correlated) with Chevron Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chevron Corp has no effect on the direction of GENERAL i.e., GENERAL and Chevron Corp go up and down completely randomly.
Pair Corralation between GENERAL and Chevron Corp
Assuming the 90 days trading horizon GENERAL ELEC CAP is expected to under-perform the Chevron Corp. In addition to that, GENERAL is 1.13 times more volatile than Chevron Corp. It trades about -0.03 of its total potential returns per unit of risk. Chevron Corp is currently generating about 0.31 per unit of volatility. If you would invest 15,152 in Chevron Corp on September 2, 2024 and sell it today you would earn a total of 1,041 from holding Chevron Corp or generate 6.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.19% |
| Values | Daily Returns |
GENERAL ELEC CAP vs. Chevron Corp
Performance |
| Timeline |
| GENERAL ELEC CAP |
| Chevron Corp |
GENERAL and Chevron Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GENERAL and Chevron Corp
The main advantage of trading using opposite GENERAL and Chevron Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GENERAL position performs unexpectedly, Chevron Corp 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 Chevron Corp will offset losses from the drop in Chevron Corp's long position.| GENERAL vs. Amkor Technology | GENERAL vs. Eldorado Gold Corp | GENERAL vs. Mediag3 | GENERAL vs. Harmony Gold Mining |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stocks Directory Find actively traded stocks across global markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Transaction History View history of all your transactions and understand their impact on performance |