- Companies in United States
- Peer Analysis
This module allows you to analyze existing cross correlation between DOW and Chevron Corporation. You can compare the effects of market volatilities on DOW and Chevron 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 DOW with a short position of Chevron. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and Chevron.
|Horizon||30 Days Login to change|
Predicted Return Density
DOW vs. Chevron Corp.
Given the investment horizon of 30 days, DOW is expected to generate 0.88 times more return on investment than Chevron. However, DOW is 1.13 times less risky than Chevron. It trades about 0.02 of its potential returns per unit of risk. Chevron Corporation is currently generating about -0.02 per unit of risk. If you would invest 2,446,469 in DOW on December 21, 2018 and sell it today you would earn a total of 24,166 from holding DOW or generate 0.99% return on investment over 30 days.
Pair Corralation between DOW and Chevron
|Time Period||2 Months [change]|
Diversification Opportunities for DOW and Chevron
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding DOW and Chevron Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Chevron and DOW 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 DOW are associated (or correlated) with Chevron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chevron has no effect on the direction of DOW i.e. DOW and Chevron go up and down completely randomly.